Correlation Between Massmutual Select and Ab Small
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Ab Small 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 Ab Small 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 Ab Small Cap, you can compare the effects of market volatilities on Massmutual Select and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Ab Small.
Diversification Opportunities for Massmutual Select and Ab Small
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MASSMUTUAL and QUAKX is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Ab Small go up and down completely randomly.
Pair Corralation between Massmutual Select and Ab Small
Assuming the 90 days horizon Massmutual Select Small is expected to generate 0.93 times more return on investment than Ab Small. However, Massmutual Select Small is 1.07 times less risky than Ab Small. It trades about 0.24 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.21 per unit of risk. If you would invest 1,005 in Massmutual Select Small on August 28, 2024 and sell it today you would earn a total of 82.00 from holding Massmutual Select Small or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Small vs. Ab Small Cap
Performance |
| Timeline |
| Massmutual Select Small |
| Ab Small Cap |
Massmutual Select and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Ab Small
The main advantage of trading using opposite Massmutual Select and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small'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 |
| Ab Small vs. Ab Large Cap | Ab Small vs. Ab Small Cap | Ab Small vs. Ab Small Cap | Ab Small vs. Ab Small Cap |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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