Correlation Between Massmutual Select and Artisan Value
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Artisan Value 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 Artisan Value 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 Artisan Value Fund, you can compare the effects of market volatilities on Massmutual Select and Artisan Value 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 Artisan Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Artisan Value.
Diversification Opportunities for Massmutual Select and Artisan Value
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Artisan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Artisan Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan Value 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 Artisan Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan Value has no effect on the direction of Massmutual Select i.e., Massmutual Select and Artisan Value go up and down completely randomly.
Pair Corralation between Massmutual Select and Artisan Value
Assuming the 90 days horizon Massmutual Select is expected to generate 1.02 times less return on investment than Artisan Value. In addition to that, Massmutual Select is 1.14 times more volatile than Artisan Value Fund. It trades about 0.22 of its total potential returns per unit of risk. Artisan Value Fund is currently generating about 0.26 per unit of volatility. If you would invest 1,544 in Artisan Value Fund on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Artisan Value Fund or generate 4.02% 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 T vs. Artisan Value Fund
Performance |
| Timeline |
| Massmutual Select |
| Artisan Value |
Massmutual Select and Artisan Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Artisan Value
The main advantage of trading using opposite Massmutual Select and Artisan Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Artisan Value 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 Artisan Value will offset losses from the drop in Artisan Value's long position.| Massmutual Select vs. American Century High | Massmutual Select vs. Alpine High Yield | Massmutual Select vs. Legg Mason Partners | Massmutual Select vs. Valic Company I |
| Artisan Value vs. Delaware Limited Term Diversified | Artisan Value vs. Lord Abbett Diversified | Artisan Value vs. Blackrock Conservative Prprdptfinstttnl | Artisan Value vs. Aqr Diversified Arbitrage |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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