Correlation Between Templeton Emerging and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Templeton Emerging 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 Templeton Emerging and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Templeton Emerging Markets and Massmutual Select Blue, you can compare the effects of market volatilities on Templeton Emerging 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 Templeton Emerging with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Emerging and Massmutual Select.
Diversification Opportunities for Templeton Emerging and Massmutual Select
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Templeton and Massmutual is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Emerging Markets and Massmutual Select Blue in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Blue and Templeton Emerging 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 Templeton Emerging Markets 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 Blue has no effect on the direction of Templeton Emerging i.e., Templeton Emerging and Massmutual Select go up and down completely randomly.
Pair Corralation between Templeton Emerging and Massmutual Select
Assuming the 90 days horizon Templeton Emerging Markets is expected to under-perform the Massmutual Select. But the mutual fund apears to be less risky and, when comparing its historical volatility, Templeton Emerging Markets is 1.82 times less risky than Massmutual Select. The mutual fund trades about -0.12 of its potential returns per unit of risk. The Massmutual Select Blue is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 2,223 in Massmutual Select Blue on September 5, 2024 and sell it today you would earn a total of 176.00 from holding Massmutual Select Blue or generate 7.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Templeton Emerging Markets vs. Massmutual Select Blue
Performance |
| Timeline |
| Templeton Emerging |
| Massmutual Select Blue |
Templeton Emerging and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Emerging and Massmutual Select
The main advantage of trading using opposite Templeton Emerging and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton Emerging 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.| Templeton Emerging vs. T Rowe Price | Templeton Emerging vs. T Rowe Price | Templeton Emerging vs. Legg Mason Partners | Templeton Emerging vs. Hood River New |
| Massmutual Select vs. Arrow Managed Futures | Massmutual Select vs. Templeton Emerging Markets | Massmutual Select vs. Mondrian Emerging Markets | Massmutual Select vs. Dodge Cox Emerging |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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