Correlation Between Performance Trust and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Performance Trust and Massmutual Retiresmart 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 Performance Trust and Massmutual Retiresmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Performance Trust Strategic and Massmutual Retiresmart Growth, you can compare the effects of market volatilities on Performance Trust and Massmutual Retiresmart 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 Performance Trust with a short position of Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Trust and Massmutual Retiresmart.
Diversification Opportunities for Performance Trust and Massmutual Retiresmart
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Performance and Massmutual is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Performance Trust Strategic and Massmutual Retiresmart Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart and Performance Trust 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 Performance Trust Strategic are associated (or correlated) with Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Performance Trust i.e., Performance Trust and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Performance Trust and Massmutual Retiresmart
Assuming the 90 days horizon Performance Trust Strategic is expected to under-perform the Massmutual Retiresmart. But the mutual fund apears to be less risky and, when comparing its historical volatility, Performance Trust Strategic is 1.63 times less risky than Massmutual Retiresmart. The mutual fund trades about 0.0 of its potential returns per unit of risk. The Massmutual Retiresmart Growth is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Massmutual Retiresmart Growth on September 2, 2024 and sell it today you would earn a total of 50.00 from holding Massmutual Retiresmart Growth or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Trust Strategic vs. Massmutual Retiresmart Growth
Performance |
| Timeline |
| Performance Trust |
| Massmutual Retiresmart |
Performance Trust and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Trust and Massmutual Retiresmart
The main advantage of trading using opposite Performance Trust and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Trust position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.| Performance Trust vs. Alphacentric Income Opportunities | Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Guggenheim Total Return | Performance Trust vs. Pimco Income Fund |
| Massmutual Retiresmart vs. Morgan Stanley Global | Massmutual Retiresmart vs. Pimco Global Multi Asset | Massmutual Retiresmart vs. Commonwealth Global Fund | Massmutual Retiresmart 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |