Correlation Between Massmutual Select and Mmnjx
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mmnjx 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 Mmnjx 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 Mmnjx, you can compare the effects of market volatilities on Massmutual Select and Mmnjx 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 Mmnjx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mmnjx.
Diversification Opportunities for Massmutual Select and Mmnjx
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Mmnjx is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Growth and Mmnjx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmnjx 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 Mmnjx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmnjx has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mmnjx go up and down completely randomly.
Pair Corralation between Massmutual Select and Mmnjx
If you would invest 1,642 in Mmnjx on August 31, 2024 and sell it today you would earn a total of 137.00 from holding Mmnjx or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Massmutual Select Growth vs. Mmnjx
Performance |
| Timeline |
| Massmutual Select Growth |
| Mmnjx |
Massmutual Select and Mmnjx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mmnjx
The main advantage of trading using opposite Massmutual Select and Mmnjx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mmnjx 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 Mmnjx will offset losses from the drop in Mmnjx's long position.| Massmutual Select vs. Rbc Emerging Markets | Massmutual Select vs. Harbor Diversified International | Massmutual Select vs. Vanguard Developed Markets | Massmutual Select vs. Siit Emerging Markets |
| Mmnjx vs. Leggmason Partners Institutional | Mmnjx vs. Qs Large Cap | Mmnjx vs. Aam Select Income | Mmnjx vs. Rbb Fund |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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