Correlation Between Massmutual Select and Touchstone Small
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Touchstone 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 Touchstone 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 Touchstone Small Cap, you can compare the effects of market volatilities on Massmutual Select and Touchstone 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 Touchstone Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Touchstone Small.
Diversification Opportunities for Massmutual Select and Touchstone Small
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Massmutual and Touchstone is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Touchstone Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone 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 Touchstone Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Small Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Touchstone Small go up and down completely randomly.
Pair Corralation between Massmutual Select and Touchstone Small
Assuming the 90 days horizon Massmutual Select is expected to generate 1.23 times less return on investment than Touchstone Small. In addition to that, Massmutual Select is 1.18 times more volatile than Touchstone Small Cap. It trades about 0.04 of its total potential returns per unit of risk. Touchstone Small Cap is currently generating about 0.05 per unit of volatility. If you would invest 3,142 in Touchstone Small Cap on September 12, 2024 and sell it today you would earn a total of 924.00 from holding Touchstone Small Cap or generate 29.41% 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. Touchstone Small Cap
Performance |
| Timeline |
| Massmutual Select Small |
| Touchstone Small Cap |
Massmutual Select and Touchstone Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Touchstone Small
The main advantage of trading using opposite Massmutual Select and Touchstone Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Touchstone 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 Touchstone Small will offset losses from the drop in Touchstone 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 |
| Touchstone Small vs. Smallcap Growth Fund | Touchstone Small vs. Mutual Of America | Touchstone Small vs. Aqr Small Cap | Touchstone Small vs. Scout Small Cap |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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