Correlation Between Putnman Retirement and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Putnman Retirement 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 Putnman Retirement and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Putnman Retirement Ready and Massmutual Select Total, you can compare the effects of market volatilities on Putnman Retirement 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 Putnman Retirement with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Putnman Retirement and Massmutual Select.
Diversification Opportunities for Putnman Retirement and Massmutual Select
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Putnman and Massmutual is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Putnman Retirement Ready and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total and Putnman Retirement 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 Putnman Retirement Ready 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 Total has no effect on the direction of Putnman Retirement i.e., Putnman Retirement and Massmutual Select go up and down completely randomly.
Pair Corralation between Putnman Retirement and Massmutual Select
Assuming the 90 days horizon Putnman Retirement Ready is expected to generate 0.9 times more return on investment than Massmutual Select. However, Putnman Retirement Ready is 1.11 times less risky than Massmutual Select. It trades about 0.04 of its potential returns per unit of risk. Massmutual Select Total is currently generating about -0.01 per unit of risk. If you would invest 2,612 in Putnman Retirement Ready on September 13, 2024 and sell it today you would earn a total of 16.00 from holding Putnman Retirement Ready or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Putnman Retirement Ready vs. Massmutual Select Total
Performance |
| Timeline |
| Putnman Retirement Ready |
| Massmutual Select Total |
Putnman Retirement and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Putnman Retirement and Massmutual Select
The main advantage of trading using opposite Putnman Retirement and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Putnman Retirement 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.| Putnman Retirement vs. Putnam Equity Income | Putnman Retirement vs. Putnam Tax Exempt | Putnman Retirement vs. Putnam Floating Rate | Putnman Retirement vs. Putnam High Yield |
| Massmutual Select vs. Sa Worldwide Moderate | Massmutual Select vs. Franklin Lifesmart Retirement | Massmutual Select vs. Putnman Retirement Ready | Massmutual Select vs. Jpmorgan Smartretirement 2035 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |