Correlation Between Massmutual Select and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Massmutual Select 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 Select and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Mid Cap and Massmutual Select Small, you can compare the effects of market volatilities on Massmutual Select and Massmutual Select 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 Select with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Massmutual Select.
Diversification Opportunities for Massmutual Select and Massmutual Select
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Massmutual is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Mid Cap and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and Massmutual Select 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 Select Mid Cap are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Small has no effect on the direction of Massmutual Select i.e., Massmutual Select and Massmutual Select go up and down completely randomly.
Pair Corralation between Massmutual Select and Massmutual Select
Assuming the 90 days horizon Massmutual Select Mid Cap is expected to generate 0.59 times more return on investment than Massmutual Select. However, Massmutual Select Mid Cap is 1.7 times less risky than Massmutual Select. It trades about 0.04 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.0 per unit of risk. If you would invest 1,176 in Massmutual Select Mid Cap on September 3, 2024 and sell it today you would earn a total of 196.00 from holding Massmutual Select Mid Cap or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Mid Cap vs. Massmutual Select Small
Performance |
| Timeline |
| Massmutual Select Mid |
| Massmutual Select Small |
Massmutual Select and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Massmutual Select
The main advantage of trading using opposite Massmutual Select and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Massmutual Select 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 Select will offset losses from the drop in Massmutual Select's long position.| Massmutual Select vs. Western Asset High | Massmutual Select vs. Pioneer High Yield | Massmutual Select vs. Morningstar Aggressive Growth | Massmutual Select vs. Multimanager Lifestyle Aggressive |
| Massmutual Select vs. Vanguard Small Cap Index | Massmutual Select vs. Vanguard Small Cap Index | Massmutual Select vs. Vanguard Small Cap Index | Massmutual Select vs. Vanguard Small Cap Index |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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