Correlation Between Touchstone Small and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Touchstone Small 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 Touchstone Small and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Small Cap and Massmutual Select Small, you can compare the effects of market volatilities on Touchstone Small 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 Touchstone Small with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Small and Massmutual Select.
Diversification Opportunities for Touchstone Small and Massmutual Select
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Touchstone and Massmutual is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Small Cap and Massmutual Select Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Small and Touchstone 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 Touchstone Small 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 Small has no effect on the direction of Touchstone Small i.e., Touchstone Small and Massmutual Select go up and down completely randomly.
Pair Corralation between Touchstone Small and Massmutual Select
Assuming the 90 days horizon Touchstone Small Cap is expected to generate 0.86 times more return on investment than Massmutual Select. However, Touchstone Small Cap is 1.17 times less risky than Massmutual Select. It trades about 0.07 of its potential returns per unit of risk. Massmutual Select Small is currently generating about 0.05 per unit of risk. If you would invest 3,238 in Touchstone Small Cap on September 12, 2024 and sell it today you would earn a total of 828.00 from holding Touchstone Small Cap or generate 25.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Touchstone Small Cap vs. Massmutual Select Small
Performance |
| Timeline |
| Touchstone Small Cap |
| Massmutual Select Small |
Touchstone Small and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Small and Massmutual Select
The main advantage of trading using opposite Touchstone Small and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Small 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.| Touchstone Small vs. Smallcap Growth Fund | Touchstone Small vs. Mutual Of America | Touchstone Small vs. Aqr Small Cap | Touchstone Small vs. Scout Small Cap |
| Massmutual Select vs. Dreyfusstandish Global Fixed | Massmutual Select vs. Versatile Bond Portfolio | Massmutual Select vs. Touchstone Premium Yield | Massmutual Select vs. Multisector Bond Sma |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |