Correlation Between Massmutual Select and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Massmutual Select 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 Select 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 Select T and Massmutual Select Growth, you can compare the effects of market volatilities on Massmutual Select 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 Select with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Massmutual Select.
Diversification Opportunities for Massmutual Select and Massmutual Select
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Massmutual and Massmutual is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth 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 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 Growth has no effect on the direction of Massmutual Select i.e., Massmutual Select and Massmutual Select go up and down completely randomly.
Pair Corralation between Massmutual Select and Massmutual Select
Assuming the 90 days horizon Massmutual Select T is expected to generate 0.26 times more return on investment than Massmutual Select. However, Massmutual Select T is 3.92 times less risky than Massmutual Select. It trades about 0.11 of its potential returns per unit of risk. Massmutual Select Growth is currently generating about -0.04 per unit of risk. If you would invest 1,618 in Massmutual Select T on August 29, 2024 and sell it today you would earn a total of 276.00 from holding Massmutual Select T or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
Massmutual Select T vs. Massmutual Select Growth
Performance |
| Timeline |
| Massmutual Select |
| Massmutual Select Growth |
Massmutual Select and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Massmutual Select
The main advantage of trading using opposite Massmutual Select and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select 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 Select vs. Fidelity Freedom Index | Massmutual Select vs. HUMANA INC | Massmutual Select vs. Aquagold International | Massmutual Select vs. Barloworld Ltd ADR |
| Massmutual Select vs. Calvert Short Duration | Massmutual Select vs. Sterling Capital Short | Massmutual Select vs. Jhancock Short Duration | Massmutual Select vs. Maryland Short Term Tax Free |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| 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 | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |