Correlation Between Massmutual Retiresmart and Nuveen Massachusetts
Can any of the company-specific risk be diversified away by investing in both Massmutual Retiresmart and Nuveen Massachusetts 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 Retiresmart and Nuveen Massachusetts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Retiresmart 2055 and Nuveen Massachusetts Municipal, you can compare the effects of market volatilities on Massmutual Retiresmart and Nuveen Massachusetts 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 Retiresmart with a short position of Nuveen Massachusetts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Retiresmart and Nuveen Massachusetts.
Diversification Opportunities for Massmutual Retiresmart and Nuveen Massachusetts
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Massmutual and NUVEEN is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Retiresmart 2055 and Nuveen Massachusetts Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Massachusetts and Massmutual Retiresmart 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 Retiresmart 2055 are associated (or correlated) with Nuveen Massachusetts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Massachusetts has no effect on the direction of Massmutual Retiresmart i.e., Massmutual Retiresmart and Nuveen Massachusetts go up and down completely randomly.
Pair Corralation between Massmutual Retiresmart and Nuveen Massachusetts
Assuming the 90 days horizon Massmutual Retiresmart 2055 is expected to generate 2.14 times more return on investment than Nuveen Massachusetts. However, Massmutual Retiresmart is 2.14 times more volatile than Nuveen Massachusetts Municipal. It trades about 0.09 of its potential returns per unit of risk. Nuveen Massachusetts Municipal is currently generating about 0.17 per unit of risk. If you would invest 1,056 in Massmutual Retiresmart 2055 on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Retiresmart 2055 or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Retiresmart 2055 vs. Nuveen Massachusetts Municipal
Performance |
| Timeline |
| Massmutual Retiresmart |
| Nuveen Massachusetts |
Massmutual Retiresmart and Nuveen Massachusetts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Retiresmart and Nuveen Massachusetts
The main advantage of trading using opposite Massmutual Retiresmart and Nuveen Massachusetts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Retiresmart position performs unexpectedly, Nuveen Massachusetts 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 Nuveen Massachusetts will offset losses from the drop in Nuveen Massachusetts' long position.| Massmutual Retiresmart vs. Nuveen Massachusetts Municipal | Massmutual Retiresmart vs. Touchstone Ohio Tax | Massmutual Retiresmart vs. Blrc Sgy Mnp | Massmutual Retiresmart vs. Sterling Capital Short |
| Nuveen Massachusetts vs. HUMANA INC | Nuveen Massachusetts vs. Aquagold International | Nuveen Massachusetts vs. Barloworld Ltd ADR | Nuveen Massachusetts vs. Morningstar Unconstrained Allocation |
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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