Correlation Between Massmutual Select and Fisher Large
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Fisher Large 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 Fisher Large 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 Fisher Large Cap, you can compare the effects of market volatilities on Massmutual Select and Fisher Large 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 Fisher Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Fisher Large.
Diversification Opportunities for Massmutual Select and Fisher Large
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Massmutual and Fisher is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Fisher Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Large 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 T are associated (or correlated) with Fisher Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Large Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Fisher Large go up and down completely randomly.
Pair Corralation between Massmutual Select and Fisher Large
Assuming the 90 days horizon Massmutual Select is expected to generate 1.06 times less return on investment than Fisher Large. But when comparing it to its historical volatility, Massmutual Select T is 1.22 times less risky than Fisher Large. It trades about 0.21 of its potential returns per unit of risk. Fisher Large Cap is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Fisher Large Cap on August 28, 2024 and sell it today you would earn a total of 68.00 from holding Fisher Large Cap or generate 3.74% 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. Fisher Large Cap
Performance |
| Timeline |
| Massmutual Select |
| Fisher Large Cap |
Massmutual Select and Fisher Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Fisher Large
The main advantage of trading using opposite Massmutual Select and Fisher Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Fisher Large 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 Fisher Large will offset losses from the drop in Fisher Large's long position.| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
| Fisher Large vs. Lord Abbett High | Fisher Large vs. Pace High Yield | Fisher Large vs. Pia High Yield | Fisher Large vs. Virtus High Yield |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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