Correlation Between Massmutual Premier and Mmngx
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Mmngx 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 Mmngx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier E and Mmngx, you can compare the effects of market volatilities on Massmutual Premier and Mmngx 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 Mmngx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Mmngx.
Diversification Opportunities for Massmutual Premier and Mmngx
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Mmngx is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier E and Mmngx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmngx 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 E are associated (or correlated) with Mmngx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmngx has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Mmngx go up and down completely randomly.
Pair Corralation between Massmutual Premier and Mmngx
Assuming the 90 days horizon Massmutual Premier is expected to generate 7.68 times less return on investment than Mmngx. But when comparing it to its historical volatility, Massmutual Premier E is 2.71 times less risky than Mmngx. It trades about 0.14 of its potential returns per unit of risk. Mmngx is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 2,127 in Mmngx on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Mmngx or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Massmutual Premier E vs. Mmngx
Performance |
| Timeline |
| Massmutual Premier |
| Mmngx |
Massmutual Premier and Mmngx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Mmngx
The main advantage of trading using opposite Massmutual Premier and Mmngx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Mmngx 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 Mmngx will offset losses from the drop in Mmngx's long position.| Massmutual Premier vs. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap |
| Mmngx vs. Oppenheimer International Diversified | Mmngx vs. Fidelity Advisor Diversified | Mmngx vs. Massmutual Premier Diversified | Mmngx vs. Harbor Diversified International |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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