Correlation Between Old Westbury and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Old Westbury 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 Old Westbury and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Westbury Municipal and Massmutual Select Mid Cap, you can compare the effects of market volatilities on Old Westbury 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 Old Westbury with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Westbury and Massmutual Select.
Diversification Opportunities for Old Westbury and Massmutual Select
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Old and Massmutual is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Old Westbury Municipal and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Old Westbury 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 Old Westbury Municipal 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 Mid has no effect on the direction of Old Westbury i.e., Old Westbury and Massmutual Select go up and down completely randomly.
Pair Corralation between Old Westbury and Massmutual Select
Assuming the 90 days horizon Old Westbury Municipal is expected to generate 0.17 times more return on investment than Massmutual Select. However, Old Westbury Municipal is 5.85 times less risky than Massmutual Select. It trades about 0.51 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.0 per unit of risk. If you would invest 1,149 in Old Westbury Municipal on September 14, 2024 and sell it today you would earn a total of 12.00 from holding Old Westbury Municipal or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Westbury Municipal vs. Massmutual Select Mid Cap
Performance |
| Timeline |
| Old Westbury Municipal |
| Massmutual Select Mid |
Old Westbury and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Westbury and Massmutual Select
The main advantage of trading using opposite Old Westbury and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Westbury 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.| Old Westbury vs. Old Westbury All | Old Westbury vs. Old Westbury California | Old Westbury vs. Old Westbury Credit | Old Westbury vs. Old Westbury Fixed |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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