Correlation Between Massmutual Select and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Barings Emerging 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 Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Small and Barings Emerging Markets, you can compare the effects of market volatilities on Massmutual Select and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Barings Emerging.
Diversification Opportunities for Massmutual Select and Barings Emerging
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MASSMUTUAL and Barings is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Small are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of Massmutual Select i.e., Massmutual Select and Barings Emerging go up and down completely randomly.
Pair Corralation between Massmutual Select and Barings Emerging
Assuming the 90 days horizon Massmutual Select Small is expected to generate 5.21 times more return on investment than Barings Emerging. However, Massmutual Select is 5.21 times more volatile than Barings Emerging Markets. It trades about 0.27 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 866.00 in Massmutual Select Small on September 4, 2024 and sell it today you would earn a total of 83.00 from holding Massmutual Select Small or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Small vs. Barings Emerging Markets
Performance |
| Timeline |
| Massmutual Select Small |
| Barings Emerging Markets |
Massmutual Select and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Barings Emerging
The main advantage of trading using opposite Massmutual Select and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
| Barings Emerging vs. Us Small Cap | Barings Emerging vs. Touchstone Small Cap | Barings Emerging vs. Massmutual Select Small | Barings Emerging vs. The Hartford Small |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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