Correlation Between Massmutual Select and Baird Small/mid
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Baird Small/mid 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 Baird Small/mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Small and Baird Smallmid Cap, you can compare the effects of market volatilities on Massmutual Select and Baird Small/mid 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 Baird Small/mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Baird Small/mid.
Diversification Opportunities for Massmutual Select and Baird Small/mid
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MASSMUTUAL and Baird is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Baird Smallmid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Smallmid Cap 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 Small are associated (or correlated) with Baird Small/mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Smallmid Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Baird Small/mid go up and down completely randomly.
Pair Corralation between Massmutual Select and Baird Small/mid
Assuming the 90 days horizon Massmutual Select Small is expected to generate 1.12 times more return on investment than Baird Small/mid. However, Massmutual Select is 1.12 times more volatile than Baird Smallmid Cap. It trades about 0.08 of its potential returns per unit of risk. Baird Smallmid Cap is currently generating about 0.04 per unit of risk. If you would invest 814.00 in Massmutual Select Small on August 28, 2024 and sell it today you would earn a total of 276.00 from holding Massmutual Select Small or generate 33.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Massmutual Select Small vs. Baird Smallmid Cap
Performance |
| Timeline |
| Massmutual Select Small |
| Baird Smallmid Cap |
Massmutual Select and Baird Small/mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Baird Small/mid
The main advantage of trading using opposite Massmutual Select and Baird Small/mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Baird Small/mid 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 Baird Small/mid will offset losses from the drop in Baird Small/mid's long position.| Massmutual Select vs. Allianzgi Vertible Fund | Massmutual Select vs. Miller Vertible Bond | Massmutual Select vs. Rationalpier 88 Convertible | Massmutual Select vs. Columbia Vertible Securities |
| Baird Small/mid vs. Bbh Intermediate Municipal | Baird Small/mid vs. Multisector Bond Sma | Baird Small/mid vs. Maryland Tax Free Bond | Baird Small/mid vs. Kinetics Spin Off And |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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