Correlation Between Massmutual Premier and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Angel Oak 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 Premier and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Balanced and Angel Oak Ultrashort, you can compare the effects of market volatilities on Massmutual Premier and Angel Oak 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 Premier with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Angel Oak.
Diversification Opportunities for Massmutual Premier and Angel Oak
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Angel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Balanced and Angel Oak Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Ultrashort and Massmutual Premier 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 Premier Balanced are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Ultrashort has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Angel Oak go up and down completely randomly.
Pair Corralation between Massmutual Premier and Angel Oak
Assuming the 90 days horizon Massmutual Premier Balanced is expected to generate 14.75 times more return on investment than Angel Oak. However, Massmutual Premier is 14.75 times more volatile than Angel Oak Ultrashort. It trades about 0.1 of its potential returns per unit of risk. Angel Oak Ultrashort is currently generating about 0.13 per unit of risk. If you would invest 1,154 in Massmutual Premier Balanced on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Massmutual Premier Balanced or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Balanced vs. Angel Oak Ultrashort
Performance |
| Timeline |
| Massmutual Premier |
| Angel Oak Ultrashort |
Massmutual Premier and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Angel Oak
The main advantage of trading using opposite Massmutual Premier and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Massmutual Premier vs. Blackrock Science Technology | Massmutual Premier vs. Global Technology Portfolio | Massmutual Premier vs. Icon Information Technology | Massmutual Premier vs. Hennessy Technology Fund |
| Angel Oak vs. Aqr Diversified Arbitrage | Angel Oak vs. Davenport Small Cap | Angel Oak vs. Schwab Small Cap Index | Angel Oak vs. Lord Abbett Diversified |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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