Correlation Between Growth Strategy and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Growth Strategy 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 Growth Strategy and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Massmutual Select Total, you can compare the effects of market volatilities on Growth Strategy 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 Growth Strategy with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Massmutual Select.
Diversification Opportunities for Growth Strategy and Massmutual Select
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growth and Massmutual is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund 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 Growth Strategy 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 Growth Strategy Fund 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 Growth Strategy i.e., Growth Strategy and Massmutual Select go up and down completely randomly.
Pair Corralation between Growth Strategy and Massmutual Select
Assuming the 90 days horizon Growth Strategy is expected to generate 7.36 times less return on investment than Massmutual Select. In addition to that, Growth Strategy is 1.18 times more volatile than Massmutual Select Total. It trades about 0.01 of its total potential returns per unit of risk. Massmutual Select Total is currently generating about 0.1 per unit of volatility. If you would invest 837.00 in Massmutual Select Total on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Massmutual Select Total or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Massmutual Select Total
Performance |
| Timeline |
| Growth Strategy |
| Massmutual Select Total |
Growth Strategy and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Massmutual Select
The main advantage of trading using opposite Growth Strategy and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy 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.| Growth Strategy vs. Smallcap Growth Fund | Growth Strategy vs. T Rowe Price | Growth Strategy vs. L Abbett Growth | Growth Strategy vs. Rational Defensive Growth |
| Massmutual Select vs. Metropolitan West Total | Massmutual Select vs. SCOR PK | Massmutual Select vs. Morningstar Unconstrained Allocation | Massmutual Select vs. Thrivent High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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