Correlation Between Massmutual Premier and Catalyst/millburn
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Catalyst/millburn 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 Catalyst/millburn 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 Catalystmillburn Hedge Strategy, you can compare the effects of market volatilities on Massmutual Premier and Catalyst/millburn 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 Catalyst/millburn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Catalyst/millburn.
Diversification Opportunities for Massmutual Premier and Catalyst/millburn
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Massmutual and Catalyst/millburn is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Funds and Catalystmillburn Hedge Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmillburn Hedge 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 Catalyst/millburn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmillburn Hedge has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Catalyst/millburn go up and down completely randomly.
Pair Corralation between Massmutual Premier and Catalyst/millburn
If you would invest 3,901 in Catalystmillburn Hedge Strategy on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Catalystmillburn Hedge Strategy or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Funds vs. Catalystmillburn Hedge Strateg
Performance |
| Timeline |
| Massmutual Premier Funds |
| Catalystmillburn Hedge |
Massmutual Premier and Catalyst/millburn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Catalyst/millburn
The main advantage of trading using opposite Massmutual Premier and Catalyst/millburn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Catalyst/millburn 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 Catalyst/millburn will offset losses from the drop in Catalyst/millburn's long position.| Massmutual Premier vs. T Rowe Price | Massmutual Premier vs. Ab Global Bond | Massmutual Premier vs. Ms Global Fixed | Massmutual Premier vs. Wisdomtree Siegel Global |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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