Correlation Between Siit Small and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Siit Small and Massmutual Retiresmart 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 Small and Massmutual Retiresmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Small Mid and Massmutual Retiresmart 2035, you can compare the effects of market volatilities on Siit Small and Massmutual Retiresmart 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 Small with a short position of Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Small and Massmutual Retiresmart.
Diversification Opportunities for Siit Small and Massmutual Retiresmart
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Massmutual is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Siit Small Mid and Massmutual Retiresmart 2035 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart and Siit Small 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 Small Mid are associated (or correlated) with Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Siit Small i.e., Siit Small and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Siit Small and Massmutual Retiresmart
Assuming the 90 days horizon Siit Small Mid is expected to generate 1.89 times more return on investment than Massmutual Retiresmart. However, Siit Small is 1.89 times more volatile than Massmutual Retiresmart 2035. It trades about 0.08 of its potential returns per unit of risk. Massmutual Retiresmart 2035 is currently generating about 0.11 per unit of risk. If you would invest 890.00 in Siit Small Mid on September 12, 2024 and sell it today you would earn a total of 258.00 from holding Siit Small Mid or generate 28.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Small Mid vs. Massmutual Retiresmart 2035
Performance |
| Timeline |
| Siit Small Mid |
| Massmutual Retiresmart |
Siit Small and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Small and Massmutual Retiresmart
The main advantage of trading using opposite Siit Small and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Small position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.| Siit Small vs. Rationalpier 88 Convertible | Siit Small vs. Allianzgi Convertible Income | Siit Small vs. Gabelli Convertible And | Siit Small vs. Lord Abbett Convertible |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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