Correlation Between Massmutual Premier and SPACE
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and SPACE 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 Premier and SPACE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Short Duration and SPACE, you can compare the effects of market volatilities on Massmutual Premier and SPACE 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 Premier with a short position of SPACE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and SPACE.
Diversification Opportunities for Massmutual Premier and SPACE
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and SPACE is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Short Durat and SPACE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPACE and Massmutual Premier 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 Premier Short Duration are associated (or correlated) with SPACE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPACE has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and SPACE go up and down completely randomly.
Pair Corralation between Massmutual Premier and SPACE
Assuming the 90 days horizon Massmutual Premier is expected to generate 68.65 times less return on investment than SPACE. But when comparing it to its historical volatility, Massmutual Premier Short Duration is 46.87 times less risky than SPACE. It trades about 0.09 of its potential returns per unit of risk. SPACE is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 35.00 in SPACE on September 12, 2024 and sell it today you would earn a total of 15.00 from holding SPACE or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Massmutual Premier Short Durat vs. SPACE
Performance |
| Timeline |
| Massmutual Premier |
| SPACE |
Massmutual Premier and SPACE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and SPACE
The main advantage of trading using opposite Massmutual Premier and SPACE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, SPACE 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 SPACE will offset losses from the drop in SPACE's long position.| Massmutual Premier vs. Eagle Mlp Strategy | Massmutual Premier vs. Dws Emerging Markets | Massmutual Premier vs. Nasdaq 100 2x Strategy | Massmutual Premier vs. Vy Jpmorgan Emerging |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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