Correlation Between Massmutual Select and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Massmutual Retiresmart 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 Retiresmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Growth and Massmutual Retiresmart 2045, you can compare the effects of market volatilities on Massmutual Select and Massmutual Retiresmart 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 Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Massmutual Retiresmart.
Diversification Opportunities for Massmutual Select and Massmutual Retiresmart
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Massmutual is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Growth and Massmutual Retiresmart 2045 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 Growth are associated (or correlated) with Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Massmutual Select i.e., Massmutual Select and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Massmutual Select and Massmutual Retiresmart
Assuming the 90 days horizon Massmutual Select Growth is expected to under-perform the Massmutual Retiresmart. In addition to that, Massmutual Select is 16.06 times more volatile than Massmutual Retiresmart 2045. It trades about -0.13 of its total potential returns per unit of risk. Massmutual Retiresmart 2045 is currently generating about 0.12 per unit of volatility. If you would invest 1,142 in Massmutual Retiresmart 2045 on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Massmutual Retiresmart 2045 or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 84.13% |
| Values | Daily Returns |
Massmutual Select Growth vs. Massmutual Retiresmart 2045
Performance |
| Timeline |
| Massmutual Select Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Massmutual Retiresmart |
Massmutual Select and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Massmutual Retiresmart
The main advantage of trading using opposite Massmutual Select and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.| Massmutual Select vs. Investec Emerging Markets | Massmutual Select vs. Rbc Emerging Markets | Massmutual Select vs. Ab All Market | Massmutual Select vs. Western Asset Diversified |
| Massmutual Retiresmart vs. Enhanced Large Pany | Massmutual Retiresmart vs. T Rowe Price | Massmutual Retiresmart vs. Aqr Large Cap | Massmutual Retiresmart vs. Guidemark Large Cap |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |