Correlation Between Massmutual Premier and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Eagle Growth 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Massmutual Premier and Eagle Growth 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Eagle Growth.
Diversification Opportunities for Massmutual Premier and Eagle Growth
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Massmutual and Eagle is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Funds and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Eagle Growth go up and down completely randomly.
Pair Corralation between Massmutual Premier and Eagle Growth
If you would invest 2,364 in Eagle Growth Income on August 31, 2024 and sell it today you would earn a total of 88.00 from holding Eagle Growth Income or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Funds vs. Eagle Growth Income
Performance |
| Timeline |
| Massmutual Premier Funds |
| Eagle Growth Income |
Massmutual Premier and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Eagle Growth
The main advantage of trading using opposite Massmutual Premier and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Massmutual Premier vs. Aqr Diversified Arbitrage | Massmutual Premier vs. Jhancock Diversified Macro | Massmutual Premier vs. Davenport Small Cap | Massmutual Premier vs. Blackrock Sm Cap |
| Eagle Growth vs. California High Yield Municipal | Eagle Growth vs. Artisan High Income | Eagle Growth vs. Metropolitan West High | Eagle Growth vs. Pioneer High Yield |
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 Stocks Directory module to find actively traded stocks across global markets.
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