Correlation Between Massmutual Select and Mmzjx
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mmzjx 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 Mmzjx 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 Mmzjx, you can compare the effects of market volatilities on Massmutual Select and Mmzjx 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 Mmzjx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mmzjx.
Diversification Opportunities for Massmutual Select and Mmzjx
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Massmutual and Mmzjx is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Mid Cap and Mmzjx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmzjx 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 Mmzjx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmzjx has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mmzjx go up and down completely randomly.
Pair Corralation between Massmutual Select and Mmzjx
Assuming the 90 days horizon Massmutual Select Mid Cap is expected to under-perform the Mmzjx. But the mutual fund apears to be less risky and, when comparing its historical volatility, Massmutual Select Mid Cap is 2.19 times less risky than Mmzjx. The mutual fund trades about -0.06 of its potential returns per unit of risk. The Mmzjx is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,136 in Mmzjx on November 5, 2024 and sell it today you would earn a total of 145.00 from holding Mmzjx or generate 12.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Mid Cap vs. Mmzjx
Performance |
| Timeline |
| Massmutual Select Mid |
| Mmzjx |
Massmutual Select and Mmzjx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mmzjx
The main advantage of trading using opposite Massmutual Select and Mmzjx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mmzjx 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 Mmzjx will offset losses from the drop in Mmzjx's long position.| Massmutual Select vs. Western Asset Short | Massmutual Select vs. Balanced Strategy Fund | Massmutual Select vs. Mid Cap 15x Strategy | Massmutual Select vs. Ashmore Emerging Markets |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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