Correlation Between Massmutual Select and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Massmutual Select and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Angel Oak.
Diversification Opportunities for Massmutual Select and Angel Oak
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Angel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Massmutual Select i.e., Massmutual Select and Angel Oak go up and down completely randomly.
Pair Corralation between Massmutual Select and Angel Oak
Assuming the 90 days horizon Massmutual Select T is expected to generate 2.57 times more return on investment than Angel Oak. However, Massmutual Select is 2.57 times more volatile than Angel Oak Financial. It trades about 0.31 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.14 per unit of risk. If you would invest 1,871 in Massmutual Select T on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Massmutual Select T or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select T vs. Angel Oak Financial
Performance |
| Timeline |
| Massmutual Select |
| Angel Oak Financial |
Massmutual Select and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Angel Oak
The main advantage of trading using opposite Massmutual Select and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Massmutual Select vs. Fidelity Freedom Blend | Massmutual Select vs. Fidelity Freedom Blend | Massmutual Select vs. Fidelity Freedom Blend | Massmutual Select vs. Fidelity Freedom Blend |
| Angel Oak vs. Omni Small Cap Value | Angel Oak vs. T Rowe Price | Angel Oak vs. Commonwealth Global Fund | Angel Oak vs. Nasdaq 100 Fund Class |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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