Correlation Between Massmutual Premier and Institutional Fiduciary
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Institutional Fiduciary 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 Institutional Fiduciary 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 Institutional Fiduciary Trust, you can compare the effects of market volatilities on Massmutual Premier and Institutional Fiduciary 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 Institutional Fiduciary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Institutional Fiduciary.
Diversification Opportunities for Massmutual Premier and Institutional Fiduciary
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Massmutual and Institutional is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Funds and Institutional Fiduciary Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Institutional Fiduciary 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 Institutional Fiduciary. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Institutional Fiduciary has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Institutional Fiduciary go up and down completely randomly.
Pair Corralation between Massmutual Premier and Institutional Fiduciary
Assuming the 90 days horizon Massmutual Premier is expected to generate 21.38 times less return on investment than Institutional Fiduciary. But when comparing it to its historical volatility, Massmutual Premier Funds is 14.3 times less risky than Institutional Fiduciary. It trades about 0.02 of its potential returns per unit of risk. Institutional Fiduciary Trust is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 355.00 in Institutional Fiduciary Trust on August 28, 2024 and sell it today you would lose (255.00) from holding Institutional Fiduciary Trust or give up 71.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.38% |
| Values | Daily Returns |
Massmutual Premier Funds vs. Institutional Fiduciary Trust
Performance |
| Timeline |
| Massmutual Premier Funds |
| Institutional Fiduciary |
Massmutual Premier and Institutional Fiduciary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Institutional Fiduciary
The main advantage of trading using opposite Massmutual Premier and Institutional Fiduciary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Institutional Fiduciary 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 Institutional Fiduciary will offset losses from the drop in Institutional Fiduciary'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 |
| Institutional Fiduciary vs. Vanguard Total Stock | Institutional Fiduciary vs. Vanguard 500 Index | Institutional Fiduciary vs. Vanguard Total Stock | Institutional Fiduciary vs. Vanguard Total Stock |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |