Correlation Between Growth Fund and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Massmutual Premier 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 Fund and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Of and Massmutual Premier Funds, you can compare the effects of market volatilities on Growth Fund and Massmutual Premier 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 Fund with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Massmutual Premier.
Diversification Opportunities for Growth Fund and Massmutual Premier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Growth and Massmutual is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Massmutual Premier Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Funds and Growth Fund 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 Fund Of are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier Funds has no effect on the direction of Growth Fund i.e., Growth Fund and Massmutual Premier go up and down completely randomly.
Pair Corralation between Growth Fund and Massmutual Premier
Assuming the 90 days horizon Growth Fund Of is expected to generate 2.1 times more return on investment than Massmutual Premier. However, Growth Fund is 2.1 times more volatile than Massmutual Premier Funds. It trades about 0.09 of its potential returns per unit of risk. Massmutual Premier Funds is currently generating about 0.04 per unit of risk. If you would invest 5,389 in Growth Fund Of on September 2, 2024 and sell it today you would earn a total of 2,017 from holding Growth Fund Of or generate 37.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Growth Fund Of vs. Massmutual Premier Funds
Performance |
| Timeline |
| Growth Fund |
| Massmutual Premier Funds |
Growth Fund and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Massmutual Premier
The main advantage of trading using opposite Growth Fund and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Massmutual Premier 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 Premier will offset losses from the drop in Massmutual Premier's long position.| Growth Fund vs. Europacific Growth Fund | Growth Fund vs. Washington Mutual Investors | Growth Fund vs. Capital World Growth | Growth Fund vs. American Balanced Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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