Correlation Between Massmutual Select and Barings Active
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Barings Active 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 Barings Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Focused and Barings Active Short, you can compare the effects of market volatilities on Massmutual Select and Barings Active 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 Barings Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Barings Active.
Diversification Opportunities for Massmutual Select and Barings Active
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and Barings is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Focused and Barings Active Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Active Short 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 Focused are associated (or correlated) with Barings Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Active Short has no effect on the direction of Massmutual Select i.e., Massmutual Select and Barings Active go up and down completely randomly.
Pair Corralation between Massmutual Select and Barings Active
Assuming the 90 days horizon Massmutual Select Focused is expected to generate 4.37 times more return on investment than Barings Active. However, Massmutual Select is 4.37 times more volatile than Barings Active Short. It trades about 0.34 of its potential returns per unit of risk. Barings Active Short is currently generating about 0.09 per unit of risk. If you would invest 1,854 in Massmutual Select Focused on September 4, 2024 and sell it today you would earn a total of 68.00 from holding Massmutual Select Focused or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Massmutual Select Focused vs. Barings Active Short
Performance |
| Timeline |
| Massmutual Select Focused |
| Barings Active Short |
Massmutual Select and Barings Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Barings Active
The main advantage of trading using opposite Massmutual Select and Barings Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Barings Active 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 Barings Active will offset losses from the drop in Barings Active's long position.| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
| Barings Active vs. Tiaa Cref Smallmid Cap Equity | Barings Active vs. Small Cap Stock | Barings Active vs. The Gabelli Small | Barings Active vs. T Rowe Price |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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