Correlation Between Massmutual Select and Dana Large
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Dana Large 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 Dana Large 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 Dana Large Cap, you can compare the effects of market volatilities on Massmutual Select and Dana Large 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 Dana Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Dana Large.
Diversification Opportunities for Massmutual Select and Dana Large
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Dana is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Small and Dana Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Large 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 Dana Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Large Cap has no effect on the direction of Massmutual Select i.e., Massmutual Select and Dana Large go up and down completely randomly.
Pair Corralation between Massmutual Select and Dana Large
Assuming the 90 days horizon Massmutual Select Small is expected to generate 1.58 times more return on investment than Dana Large. However, Massmutual Select is 1.58 times more volatile than Dana Large Cap. It trades about 0.1 of its potential returns per unit of risk. Dana Large Cap is currently generating about 0.11 per unit of risk. If you would invest 1,673 in Massmutual Select Small on September 13, 2024 and sell it today you would earn a total of 88.00 from holding Massmutual Select Small or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.67% |
| Values | Daily Returns |
Massmutual Select Small vs. Dana Large Cap
Performance |
| Timeline |
| Massmutual Select Small |
| Dana Large Cap |
Massmutual Select and Dana Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Dana Large
The main advantage of trading using opposite Massmutual Select and Dana Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Dana Large 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 Dana Large will offset losses from the drop in Dana Large's long position.| Massmutual Select vs. Dws Government Money | Massmutual Select vs. Ambrus Core Bond | Massmutual Select vs. Alliancebernstein National Municipal | Massmutual Select vs. Ab Global Bond |
| Dana Large vs. Mid Cap Growth | Dana Large vs. Franklin Growth Opportunities | Dana Large vs. Needham Aggressive Growth | Dana Large vs. Tfa Alphagen Growth |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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