Correlation Between Massmutual Select and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Massmutual Select 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 Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Growth and Massmutual Select Total, you can compare the effects of market volatilities on Massmutual Select and Massmutual Select 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 Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Massmutual Select.
Diversification Opportunities for Massmutual Select and Massmutual Select
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Massmutual is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Growth and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total 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 Growth are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Total has no effect on the direction of Massmutual Select i.e., Massmutual Select and Massmutual Select go up and down completely randomly.
Pair Corralation between Massmutual Select and Massmutual Select
Assuming the 90 days horizon Massmutual Select Growth is expected to under-perform the Massmutual Select. In addition to that, Massmutual Select is 8.36 times more volatile than Massmutual Select Total. It trades about -0.07 of its total potential returns per unit of risk. Massmutual Select Total is currently generating about 0.07 per unit of volatility. If you would invest 821.00 in Massmutual Select Total on September 3, 2024 and sell it today you would earn a total of 26.00 from holding Massmutual Select Total or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.8% |
| Values | Daily Returns |
Massmutual Select Growth vs. Massmutual Select Total
Performance |
| Timeline |
| Massmutual Select Growth |
| Massmutual Select Total |
Massmutual Select and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Massmutual Select
The main advantage of trading using opposite Massmutual Select and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Massmutual Select vs. T Rowe Price | Massmutual Select vs. Limited Term Tax | Massmutual Select vs. Vanguard California Long Term | Massmutual Select vs. Intermediate Term Tax Free Bond |
| Massmutual Select vs. Metropolitan West Total | Massmutual Select vs. Metropolitan West Total | Massmutual Select vs. Pimco Total Return | Massmutual Select vs. Total Return Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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