Correlation Between Massmutual Select and First Eagle
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select T and First Eagle Gold, you can compare the effects of market volatilities on Massmutual Select and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and First Eagle.
Diversification Opportunities for Massmutual Select and First Eagle
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Massmutual and FIRST is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold 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 T are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Gold has no effect on the direction of Massmutual Select i.e., Massmutual Select and First Eagle go up and down completely randomly.
Pair Corralation between Massmutual Select and First Eagle
Assuming the 90 days horizon Massmutual Select is expected to generate 1.72 times less return on investment than First Eagle. But when comparing it to its historical volatility, Massmutual Select T is 4.96 times less risky than First Eagle. It trades about 0.13 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,388 in First Eagle Gold on August 29, 2024 and sell it today you would earn a total of 183.00 from holding First Eagle Gold or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select T vs. First Eagle Gold
Performance |
| Timeline |
| Massmutual Select |
| First Eagle Gold |
Massmutual Select and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and First Eagle
The main advantage of trading using opposite Massmutual Select and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Massmutual Select vs. First Eagle Gold | Massmutual Select vs. Great West Goldman Sachs | Massmutual Select vs. Short Precious Metals | Massmutual Select vs. The Gold Bullion |
| First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Special | First Eagle vs. Aquagold International | First Eagle vs. Morningstar Unconstrained Allocation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |