Correlation Between Massmutual Select and Jhancock Short
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Jhancock Short 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 Jhancock Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select T and Jhancock Short Duration, you can compare the effects of market volatilities on Massmutual Select and Jhancock Short 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 Jhancock Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Jhancock Short.
Diversification Opportunities for Massmutual Select and Jhancock Short
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Massmutual and Jhancock is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Jhancock Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jhancock Short Duration 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 T are associated (or correlated) with Jhancock Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jhancock Short Duration has no effect on the direction of Massmutual Select i.e., Massmutual Select and Jhancock Short go up and down completely randomly.
Pair Corralation between Massmutual Select and Jhancock Short
Assuming the 90 days horizon Massmutual Select T is expected to generate 6.61 times more return on investment than Jhancock Short. However, Massmutual Select is 6.61 times more volatile than Jhancock Short Duration. It trades about 0.13 of its potential returns per unit of risk. Jhancock Short Duration is currently generating about 0.22 per unit of risk. If you would invest 1,137 in Massmutual Select T on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Massmutual Select T or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Massmutual Select T vs. Jhancock Short Duration
Performance |
| Timeline |
| Massmutual Select |
| Jhancock Short Duration |
Massmutual Select and Jhancock Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Jhancock Short
The main advantage of trading using opposite Massmutual Select and Jhancock Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Jhancock Short 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 Jhancock Short will offset losses from the drop in Jhancock Short's long position.| Massmutual Select vs. Queens Road Small | Massmutual Select vs. Vanguard Small Cap Value | Massmutual Select vs. Boston Partners Small | Massmutual Select vs. Fpa Queens Road |
| Jhancock Short vs. Pnc Emerging Markets | Jhancock Short vs. Ab All Market | Jhancock Short vs. Barings Emerging Markets | Jhancock Short vs. Sp Midcap Index |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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