Correlation Between Siit Large and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Siit Large 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 Siit Large and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Large Cap and Massmutual Premier Diversified, you can compare the effects of market volatilities on Siit Large 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 Siit Large with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Massmutual Premier.
Diversification Opportunities for Siit Large and Massmutual Premier
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Massmutual is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Siit Large 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 Siit Large Cap 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 has no effect on the direction of Siit Large i.e., Siit Large and Massmutual Premier go up and down completely randomly.
Pair Corralation between Siit Large and Massmutual Premier
Assuming the 90 days horizon Siit Large Cap is expected to generate 2.24 times more return on investment than Massmutual Premier. However, Siit Large is 2.24 times more volatile than Massmutual Premier Diversified. It trades about 0.14 of its potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.24 per unit of risk. If you would invest 1,293 in Siit Large Cap on September 13, 2024 and sell it today you would earn a total of 18.00 from holding Siit Large Cap or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Massmutual Premier Diversified
Performance |
| Timeline |
| Siit Large Cap |
| Massmutual Premier |
Siit Large and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Massmutual Premier
The main advantage of trading using opposite Siit Large and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large 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.| Siit Large vs. Schwab Government Money | Siit Large vs. Prudential Government Income | Siit Large vs. Davis Government Bond | Siit Large vs. Aig Government Money |
| Massmutual Premier vs. Rationalpier 88 Convertible | Massmutual Premier vs. Lord Abbett Convertible | Massmutual Premier vs. Putnam Convertible Incm Gwth | Massmutual Premier vs. Allianzgi Convertible Income |
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.
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