Correlation Between Siit Large and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Siit Large 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 Siit Large and Massmutual Select 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 Select T, you can compare the effects of market volatilities on Siit Large 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 Siit Large with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Large and Massmutual Select.
Diversification Opportunities for Siit Large and Massmutual Select
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Siit and Massmutual is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Siit Large Cap and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select 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 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 has no effect on the direction of Siit Large i.e., Siit Large and Massmutual Select go up and down completely randomly.
Pair Corralation between Siit Large and Massmutual Select
Assuming the 90 days horizon Siit Large is expected to generate 1.08 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Siit Large Cap is 1.0 times less risky than Massmutual Select. It trades about 0.19 of its potential returns per unit of risk. Massmutual Select T is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,635 in Massmutual Select T on August 28, 2024 and sell it today you would earn a total of 58.00 from holding Massmutual Select T or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Large Cap vs. Massmutual Select T
Performance |
| Timeline |
| Siit Large Cap |
| Massmutual Select |
Siit Large and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Large and Massmutual Select
The main advantage of trading using opposite Siit Large and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Large 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.| Siit Large vs. Aqr Large Cap | Siit Large vs. Qs Large Cap | Siit Large vs. Fidelity Stock Selector | Siit Large vs. Federated Mdt Large |
| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |