Correlation Between Massmutual Premier and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Massmutual Select 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 Select 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 Massmutual Select Small, you can compare the effects of market volatilities on Massmutual Premier and Massmutual Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Massmutual Select.
Diversification Opportunities for Massmutual Premier and Massmutual Select
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and Massmutual is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier E and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small 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 Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Small has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Massmutual Select go up and down completely randomly.
Pair Corralation between Massmutual Premier and Massmutual Select
Assuming the 90 days horizon Massmutual Premier E is expected to generate 0.31 times more return on investment than Massmutual Select. However, Massmutual Premier E is 3.28 times less risky than Massmutual Select. It trades about 0.04 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.0 per unit of risk. If you would invest 820.00 in Massmutual Premier E on September 3, 2024 and sell it today you would earn a total of 80.00 from holding Massmutual Premier E or generate 9.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier E vs. Massmutual Select Small
Performance |
| Timeline |
| Massmutual Premier |
| Massmutual Select Small |
Massmutual Premier and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Massmutual Select
The main advantage of trading using opposite Massmutual Premier and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Massmutual Select 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 Select will offset losses from the drop in Massmutual Select's long position.| Massmutual Premier vs. Franklin Government Money | Massmutual Premier vs. Wells Fargo Funds | Massmutual Premier vs. Lord Abbett Emerging | Massmutual Premier vs. Wilmington Funds |
| Massmutual Select vs. Locorr Dynamic Equity | Massmutual Select vs. Sarofim Equity | Massmutual Select vs. Nationwide Global Equity | Massmutual Select vs. Calamos Global Equity |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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