Correlation Between Energy Services and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Energy Services 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 Energy Services and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Services Fund and Massmutual Select Growth, you can compare the effects of market volatilities on Energy Services 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 Energy Services with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and Massmutual Select.
Diversification Opportunities for Energy Services and Massmutual Select
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between ENERGY and Massmutual is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Energy Services Fund and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth and Energy Services 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 Energy Services 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 Growth has no effect on the direction of Energy Services i.e., Energy Services and Massmutual Select go up and down completely randomly.
Pair Corralation between Energy Services and Massmutual Select
If you would invest 22,290 in Energy Services Fund on August 29, 2024 and sell it today you would earn a total of 2,105 from holding Energy Services Fund or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Energy Services Fund vs. Massmutual Select Growth
Performance |
| Timeline |
| Energy Services |
| Massmutual Select Growth |
Energy Services and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Services and Massmutual Select
The main advantage of trading using opposite Energy Services and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Services 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.| Energy Services vs. Fidelity Advisor Energy | Energy Services vs. Fidelity Advisor Energy | Energy Services vs. HUMANA INC | Energy Services vs. Aquagold International |
| Massmutual Select vs. Tortoise Energy Independence | Massmutual Select vs. Icon Natural Resources | Massmutual Select vs. Energy Services Fund | Massmutual Select vs. Gmo Resources |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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