Correlation Between Massmutual Select and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mid Cap 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 Mid Cap 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 Mid Cap Value Profund, you can compare the effects of market volatilities on Massmutual Select and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mid Cap.
Diversification Opportunities for Massmutual Select and Mid Cap
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Massmutual and Mid is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Mid Cap Value Profund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mid Cap go up and down completely randomly.
Pair Corralation between Massmutual Select and Mid Cap
Assuming the 90 days horizon Massmutual Select Small is expected to generate 1.07 times more return on investment than Mid Cap. However, Massmutual Select is 1.07 times more volatile than Mid Cap Value Profund. It trades about 0.07 of its potential returns per unit of risk. Mid Cap Value Profund is currently generating about 0.06 per unit of risk. If you would invest 922.00 in Massmutual Select Small on September 14, 2024 and sell it today you would earn a total of 10.00 from holding Massmutual Select Small or generate 1.08% 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 Small vs. Mid Cap Value Profund
Performance |
| Timeline |
| Massmutual Select Small |
| Mid Cap Value |
Massmutual Select and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mid Cap
The main advantage of trading using opposite Massmutual Select and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap'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 |
| Mid Cap vs. Dws Government Money | Mid Cap vs. Davis Government Bond | Mid Cap vs. Schwab Government Money | Mid Cap vs. Virtus Seix Government |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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