Correlation Between Siit Ultra and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Siit Ultra 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 Ultra 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 Ultra Short and Massmutual Premier E, you can compare the effects of market volatilities on Siit Ultra 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 Ultra with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Ultra and Massmutual Premier.
Diversification Opportunities for Siit Ultra and Massmutual Premier
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siit and Massmutual is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Siit Ultra Short and Massmutual Premier E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Siit Ultra 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 Ultra Short 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 Ultra i.e., Siit Ultra and Massmutual Premier go up and down completely randomly.
Pair Corralation between Siit Ultra and Massmutual Premier
Assuming the 90 days horizon Siit Ultra is expected to generate 1.12 times less return on investment than Massmutual Premier. But when comparing it to its historical volatility, Siit Ultra Short is 3.06 times less risky than Massmutual Premier. It trades about 0.21 of its potential returns per unit of risk. Massmutual Premier E is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Massmutual Premier E on September 14, 2024 and sell it today you would earn a total of 26.00 from holding Massmutual Premier E or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Ultra Short vs. Massmutual Premier E
Performance |
| Timeline |
| Siit Ultra Short |
| Massmutual Premier |
Siit Ultra and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Ultra and Massmutual Premier
The main advantage of trading using opposite Siit Ultra and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Ultra 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 Ultra vs. Simt Multi Asset Accumulation | Siit Ultra vs. Saat Market Growth | Siit Ultra vs. Simt Real Return | Siit Ultra vs. Simt Small Cap |
| Massmutual Premier vs. Virtus Multi Sector Short | Massmutual Premier vs. Dreyfus Short Intermediate | Massmutual Premier vs. Delaware Investments Ultrashort | Massmutual Premier vs. Siit Ultra Short |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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