Correlation Between Sp Midcap and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Sp Midcap 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 Sp Midcap and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Midcap Index and Massmutual Select T, you can compare the effects of market volatilities on Sp Midcap 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 Sp Midcap with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Midcap and Massmutual Select.
Diversification Opportunities for Sp Midcap and Massmutual Select
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SPMIX and Massmutual is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sp Midcap Index and Massmutual Select T in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Sp Midcap 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 Sp Midcap Index 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 Sp Midcap i.e., Sp Midcap and Massmutual Select go up and down completely randomly.
Pair Corralation between Sp Midcap and Massmutual Select
Assuming the 90 days horizon Sp Midcap Index is expected to under-perform the Massmutual Select. In addition to that, Sp Midcap is 2.87 times more volatile than Massmutual Select T. It trades about -0.06 of its total potential returns per unit of risk. Massmutual Select T is currently generating about 0.03 per unit of volatility. If you would invest 1,905 in Massmutual Select T on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Massmutual Select T or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Sp Midcap Index vs. Massmutual Select T
Performance |
| Timeline |
| Sp Midcap Index |
| Massmutual Select |
Sp Midcap and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp Midcap and Massmutual Select
The main advantage of trading using opposite Sp Midcap and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Midcap 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.| Sp Midcap vs. Shelton Emerging Markets | Sp Midcap vs. Shelton Emerging Markets | Sp Midcap vs. Shelton Funds | Sp Midcap vs. Nasdaq 100 Index Fund |
| Massmutual Select vs. Prudential Health Sciences | Massmutual Select vs. Baillie Gifford Health | Massmutual Select vs. Alphacentric Lifesci Healthcare | Massmutual Select vs. Hartford Healthcare Hls |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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