Correlation Between Massmutual Select and The Hartford
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and The Hartford 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 The Hartford 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 The Hartford Small, you can compare the effects of market volatilities on Massmutual Select and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and The Hartford.
Diversification Opportunities for Massmutual Select and The Hartford
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Massmutual and The is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and The Hartford Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Small 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Small has no effect on the direction of Massmutual Select i.e., Massmutual Select and The Hartford go up and down completely randomly.
Pair Corralation between Massmutual Select and The Hartford
Assuming the 90 days horizon Massmutual Select Small is expected to generate 1.0 times more return on investment than The Hartford. However, Massmutual Select is 1.0 times more volatile than The Hartford Small. It trades about 0.33 of its potential returns per unit of risk. The Hartford Small is currently generating about 0.33 per unit of risk. If you would invest 979.00 in Massmutual Select Small on September 1, 2024 and sell it today you would earn a total of 105.00 from holding Massmutual Select Small or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Massmutual Select Small vs. The Hartford Small
Performance |
| Timeline |
| Massmutual Select Small |
| Hartford Small |
Massmutual Select and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and The Hartford
The main advantage of trading using opposite Massmutual Select and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Massmutual Select vs. Alpsalerian Energy Infrastructure | Massmutual Select vs. Jennison Natural Resources | Massmutual Select vs. Energy Basic Materials | Massmutual Select vs. Icon Natural Resources |
| The Hartford vs. Ab All Market | The Hartford vs. Ep Emerging Markets | The Hartford vs. Artisan Emerging Markets | The Hartford vs. Origin Emerging Markets |
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
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |