Correlation Between Siit High and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Siit High 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 High 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 High Yield and Massmutual Premier Global, you can compare the effects of market volatilities on Siit High 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 High with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and Massmutual Premier.
Diversification Opportunities for Siit High and Massmutual Premier
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siit and Massmutual is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and Massmutual Premier Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Global and Siit High 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 High Yield 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 Global has no effect on the direction of Siit High i.e., Siit High and Massmutual Premier go up and down completely randomly.
Pair Corralation between Siit High and Massmutual Premier
Assuming the 90 days horizon Siit High is expected to generate 1.36 times less return on investment than Massmutual Premier. But when comparing it to its historical volatility, Siit High Yield is 4.35 times less risky than Massmutual Premier. It trades about 0.12 of its potential returns per unit of risk. Massmutual Premier Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 937.00 in Massmutual Premier Global on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Massmutual Premier Global or generate 23.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siit High Yield vs. Massmutual Premier Global
Performance |
| Timeline |
| Siit High Yield |
| Massmutual Premier Global |
Siit High and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and Massmutual Premier
The main advantage of trading using opposite Siit High and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High 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 High vs. John Hancock Financial | Siit High vs. Davis Financial Fund | Siit High vs. Goldman Sachs Financial | Siit High vs. Fidelity Advisor Financial |
| Massmutual Premier vs. T Rowe Price | Massmutual Premier vs. Multimedia Portfolio Multimedia | Massmutual Premier vs. L Abbett Fundamental | Massmutual Premier vs. Omni Small Cap Value |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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