Correlation Between Siit Global and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Siit Global 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 Global 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 Global Managed and Massmutual Premier Balanced, you can compare the effects of market volatilities on Siit Global 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 Global with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Massmutual Premier.
Diversification Opportunities for Siit Global and Massmutual Premier
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siit and Massmutual is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Massmutual Premier Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Siit Global 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 Global Managed 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 Global i.e., Siit Global and Massmutual Premier go up and down completely randomly.
Pair Corralation between Siit Global and Massmutual Premier
Assuming the 90 days horizon Siit Global is expected to generate 1.16 times less return on investment than Massmutual Premier. But when comparing it to its historical volatility, Siit Global Managed is 1.02 times less risky than Massmutual Premier. It trades about 0.12 of its potential returns per unit of risk. Massmutual Premier Balanced is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 992.00 in Massmutual Premier Balanced on September 12, 2024 and sell it today you would earn a total of 245.00 from holding Massmutual Premier Balanced or generate 24.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Massmutual Premier Balanced
Performance |
| Timeline |
| Siit Global Managed |
| Massmutual Premier |
Siit Global and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Massmutual Premier
The main advantage of trading using opposite Siit Global and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global 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 Global vs. Qs Growth Fund | Siit Global vs. Ab Value Fund | Siit Global vs. Century Small Cap | Siit Global vs. T Rowe Price |
| Massmutual Premier vs. Dreyfusstandish Global Fixed | Massmutual Premier vs. Morningstar Global Income | Massmutual Premier vs. Siit Global Managed | Massmutual Premier vs. Commonwealth Global 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 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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