Correlation Between Mainstay Large and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Mainstay Large and Massmutual Premier 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 Mainstay Large and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Large Cap and Massmutual Premier Funds, you can compare the effects of market volatilities on Mainstay Large and Massmutual Premier 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 Mainstay Large with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Large and Massmutual Premier.
Diversification Opportunities for Mainstay Large and Massmutual Premier
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mainstay and Massmutual is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Large Cap and Massmutual Premier Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Funds and Mainstay Large 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 Mainstay Large Cap are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier Funds has no effect on the direction of Mainstay Large i.e., Mainstay Large and Massmutual Premier go up and down completely randomly.
Pair Corralation between Mainstay Large and Massmutual Premier
If you would invest 1,118 in Mainstay Large Cap on August 30, 2024 and sell it today you would earn a total of 28.00 from holding Mainstay Large Cap or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Large Cap vs. Massmutual Premier Funds
Performance |
| Timeline |
| Mainstay Large Cap |
| Massmutual Premier Funds |
Mainstay Large and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Large and Massmutual Premier
The main advantage of trading using opposite Mainstay Large and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Large position performs unexpectedly, Massmutual Premier 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 Massmutual Premier will offset losses from the drop in Massmutual Premier's long position.| Mainstay Large vs. Growth Fund Of | Mainstay Large vs. HUMANA INC | Mainstay Large vs. Aquagold International | Mainstay Large vs. Barloworld Ltd ADR |
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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 Valuation module to check real value of public entities based on technical and fundamental data.
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