Correlation Between Massmutual Premier and Franklin Natural
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Franklin Natural at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Massmutual Premier and Franklin Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Funds and Franklin Natural Resources, you can compare the effects of market volatilities on Massmutual Premier and Franklin Natural and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Massmutual Premier with a short position of Franklin Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Franklin Natural.
Diversification Opportunities for Massmutual Premier and Franklin Natural
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Massmutual and FRANKLIN is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Funds and Franklin Natural Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Natural Res and Massmutual Premier is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Massmutual Premier Funds are associated (or correlated) with Franklin Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Natural Res has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Franklin Natural go up and down completely randomly.
Pair Corralation between Massmutual Premier and Franklin Natural
If you would invest 3,069 in Franklin Natural Resources on August 29, 2024 and sell it today you would earn a total of 146.00 from holding Franklin Natural Resources or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Funds vs. Franklin Natural Resources
Performance |
| Timeline |
| Massmutual Premier Funds |
| Franklin Natural Res |
Massmutual Premier and Franklin Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Franklin Natural
The main advantage of trading using opposite Massmutual Premier and Franklin Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Franklin Natural can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Franklin Natural will offset losses from the drop in Franklin Natural's long position.| Massmutual Premier vs. Enhanced Large Pany | Massmutual Premier vs. Tax Managed Large Cap | Massmutual Premier vs. Nuveen Winslow Large Cap | Massmutual Premier vs. Alternative Asset Allocation |
| Franklin Natural vs. T Rowe Price | Franklin Natural vs. Pioneer High Income | Franklin Natural vs. Artisan High Income | Franklin Natural vs. Alliancebernstein Global High |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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