Correlation Between Intermediate-term and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Intermediate-term 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 Intermediate-term and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermediate Term Tax Free Bond and Massmutual Select Growth, you can compare the effects of market volatilities on Intermediate-term 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 Intermediate-term with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermediate-term and Massmutual Select.
Diversification Opportunities for Intermediate-term and Massmutual Select
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intermediate-term and Massmutual is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Intermediate Term Tax Free Bon and Massmutual Select Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Growth and Intermediate-term 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 Intermediate Term Tax Free Bond 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 Growth has no effect on the direction of Intermediate-term i.e., Intermediate-term and Massmutual Select go up and down completely randomly.
Pair Corralation between Intermediate-term and Massmutual Select
If you would invest 1,076 in Intermediate Term Tax Free Bond on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Intermediate Term Tax Free Bond or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
Intermediate Term Tax Free Bon vs. Massmutual Select Growth
Performance |
| Timeline |
| Intermediate Term Tax |
| Massmutual Select Growth |
Intermediate-term and Massmutual Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermediate-term and Massmutual Select
The main advantage of trading using opposite Intermediate-term and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermediate-term 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.| Intermediate-term vs. Mesirow Financial Small | Intermediate-term vs. Goldman Sachs Financial | Intermediate-term vs. Royce Global Financial | Intermediate-term vs. Davis Financial Fund |
| Massmutual Select vs. T Rowe Price | Massmutual Select vs. Limited Term Tax | Massmutual Select vs. Vanguard California Long Term | Massmutual Select vs. Intermediate Term Tax Free Bond |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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