Correlation Between Massmutual Premier and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier 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 Premier 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 Premier Balanced and Massmutual Retiresmart 2050, you can compare the effects of market volatilities on Massmutual Premier 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 Premier with a short position of Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Massmutual Retiresmart.
Diversification Opportunities for Massmutual Premier and Massmutual Retiresmart
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Massmutual is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Balanced and Massmutual Retiresmart 2050 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart 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 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 Premier i.e., Massmutual Premier and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Massmutual Premier and Massmutual Retiresmart
Assuming the 90 days horizon Massmutual Premier Balanced is expected to generate 0.84 times more return on investment than Massmutual Retiresmart. However, Massmutual Premier Balanced is 1.2 times less risky than Massmutual Retiresmart. It trades about 0.45 of its potential returns per unit of risk. Massmutual Retiresmart 2050 is currently generating about 0.29 per unit of risk. If you would invest 1,221 in Massmutual Premier Balanced on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Massmutual Premier Balanced or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Balanced vs. Massmutual Retiresmart 2050
Performance |
| Timeline |
| Massmutual Premier |
| Massmutual Retiresmart |
Massmutual Premier and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Massmutual Retiresmart
The main advantage of trading using opposite Massmutual Premier and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier 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 Premier vs. Balanced Fund Investor | Massmutual Premier vs. Vanguard Windsor Fund | Massmutual Premier vs. Ab Small Cap | Massmutual Premier vs. Commonwealth Global Fund |
| Massmutual Retiresmart vs. Ab Value Fund | Massmutual Retiresmart vs. Growth Strategy Fund | Massmutual Retiresmart vs. Qs Growth Fund | Massmutual Retiresmart vs. Commodities Strategy 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 Stocks Directory module to find actively traded stocks across global markets.
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