Correlation Between Mmnjx and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Mmnjx 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 Mmnjx and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mmnjx and Massmutual Select Mid, you can compare the effects of market volatilities on Mmnjx 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 Mmnjx with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mmnjx and Massmutual Select.
Diversification Opportunities for Mmnjx and Massmutual Select
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mmnjx and Massmutual is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Mmnjx and Massmutual Select Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Mmnjx 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 Mmnjx 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 Mid has no effect on the direction of Mmnjx i.e., Mmnjx and Massmutual Select go up and down completely randomly.
Pair Corralation between Mmnjx and Massmutual Select
Assuming the 90 days horizon Mmnjx is expected to generate 1.67 times more return on investment than Massmutual Select. However, Mmnjx is 1.67 times more volatile than Massmutual Select Mid. It trades about 0.09 of its potential returns per unit of risk. Massmutual Select Mid is currently generating about 0.12 per unit of risk. If you would invest 1,438 in Mmnjx on September 3, 2024 and sell it today you would earn a total of 348.00 from holding Mmnjx or generate 24.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.64% |
| Values | Daily Returns |
Mmnjx vs. Massmutual Select Mid
Performance |
| Timeline |
| Mmnjx |
| Massmutual Select Mid |
Mmnjx and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mmnjx and Massmutual Select
The main advantage of trading using opposite Mmnjx and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mmnjx 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.| Mmnjx vs. Fpa Queens Road | Mmnjx vs. Lord Abbett Small | Mmnjx vs. Mutual Of America | Mmnjx vs. Ab Discovery Value |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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