Correlation Between Oakmark Bond and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Oakmark Bond 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 Oakmark Bond and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oakmark Bond and Massmutual Select Diversified, you can compare the effects of market volatilities on Oakmark Bond 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 Oakmark Bond with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oakmark Bond and Massmutual Select.
Diversification Opportunities for Oakmark Bond and Massmutual Select
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oakmark and Massmutual is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Oakmark Bond and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Oakmark Bond 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 Oakmark Bond 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 Oakmark Bond i.e., Oakmark Bond and Massmutual Select go up and down completely randomly.
Pair Corralation between Oakmark Bond and Massmutual Select
Assuming the 90 days horizon Oakmark Bond is expected to generate 8.77 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Oakmark Bond is 2.72 times less risky than Massmutual Select. It trades about 0.01 of its potential returns per unit of risk. Massmutual Select Diversified is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,072 in Massmutual Select Diversified on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Massmutual Select Diversified or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oakmark Bond vs. Massmutual Select Diversified
Performance |
| Timeline |
| Oakmark Bond |
| Massmutual Select |
Oakmark Bond and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oakmark Bond and Massmutual Select
The main advantage of trading using opposite Oakmark Bond and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakmark Bond 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.| Oakmark Bond vs. Pace High Yield | Oakmark Bond vs. Artisan High Income | Oakmark Bond vs. Intal High Relative | Oakmark Bond vs. Siit High Yield |
| Massmutual Select vs. Lsv Small Cap | Massmutual Select vs. Palm Valley Capital | Massmutual Select vs. Boston Partners Small | Massmutual Select vs. Mutual Of America |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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