Correlation Between Massmutual Select and Fisher Small
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Fisher Small 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 Small 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 Fisher Small Cap, you can compare the effects of market volatilities on Massmutual Select and Fisher Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Fisher Small.
Diversification Opportunities for Massmutual Select and Fisher Small
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Fisher is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Small 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 Small are associated (or correlated) with Fisher Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Small Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Fisher Small go up and down completely randomly.
Pair Corralation between Massmutual Select and Fisher Small
Assuming the 90 days horizon Massmutual Select is expected to generate 1.48 times less return on investment than Fisher Small. But when comparing it to its historical volatility, Massmutual Select Small is 1.06 times less risky than Fisher Small. It trades about 0.04 of its potential returns per unit of risk. Fisher Small Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 982.00 in Fisher Small Cap on September 12, 2024 and sell it today you would earn a total of 345.00 from holding Fisher Small Cap or generate 35.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Massmutual Select Small vs. Fisher Small Cap
Performance |
| Timeline |
| Massmutual Select Small |
| Fisher Small Cap |
Massmutual Select and Fisher Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Fisher Small
The main advantage of trading using opposite Massmutual Select and Fisher Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Fisher Small 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 Small will offset losses from the drop in Fisher Small's long position.| Massmutual Select vs. Dreyfusstandish Global Fixed | Massmutual Select vs. Versatile Bond Portfolio | Massmutual Select vs. Touchstone Premium Yield | Massmutual Select vs. Multisector Bond Sma |
| Fisher Small vs. Fisher Stock | Fisher Small vs. Fisher Esg Fixed | Fisher Small vs. Fisher Esg Stock | Fisher Small vs. Fisher All Foreign |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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