Correlation Between Needham Aggressive and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Needham Aggressive and Massmutual Select 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 Needham Aggressive and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Needham Aggressive Growth and Massmutual Select T, you can compare the effects of market volatilities on Needham Aggressive and Massmutual Select 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 Needham Aggressive with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Needham Aggressive and Massmutual Select.
Diversification Opportunities for Needham Aggressive and Massmutual Select
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Needham and Massmutual is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Needham Aggressive Growth and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Needham Aggressive 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 Needham Aggressive Growth are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Needham Aggressive i.e., Needham Aggressive and Massmutual Select go up and down completely randomly.
Pair Corralation between Needham Aggressive and Massmutual Select
Assuming the 90 days horizon Needham Aggressive is expected to generate 4.23 times less return on investment than Massmutual Select. In addition to that, Needham Aggressive is 4.54 times more volatile than Massmutual Select T. It trades about 0.01 of its total potential returns per unit of risk. Massmutual Select T is currently generating about 0.24 per unit of volatility. If you would invest 1,349 in Massmutual Select T on November 4, 2024 and sell it today you would earn a total of 23.00 from holding Massmutual Select T or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Needham Aggressive Growth vs. Massmutual Select T
Performance |
| Timeline |
| Needham Aggressive Growth |
| Massmutual Select |
Needham Aggressive and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Needham Aggressive and Massmutual Select
The main advantage of trading using opposite Needham Aggressive and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Needham Aggressive position performs unexpectedly, Massmutual Select 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 Massmutual Select will offset losses from the drop in Massmutual Select's long position.| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
| Massmutual Select vs. Dws Global Macro | Massmutual Select vs. Transamerica Asset Allocation | Massmutual Select vs. Barings Global Floating | Massmutual Select vs. T Rowe Price |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |