Correlation Between Voya Target and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Voya Target 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 Voya Target and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Target Retirement and Massmutual Premier Small, you can compare the effects of market volatilities on Voya Target 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 Voya Target with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Target and Massmutual Premier.
Diversification Opportunities for Voya Target and Massmutual Premier
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Voya and Massmutual is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Voya Target Retirement and Massmutual Premier Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier Small and Voya Target 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 Voya Target Retirement 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 Small has no effect on the direction of Voya Target i.e., Voya Target and Massmutual Premier go up and down completely randomly.
Pair Corralation between Voya Target and Massmutual Premier
Assuming the 90 days horizon Voya Target Retirement is expected to generate 0.41 times more return on investment than Massmutual Premier. However, Voya Target Retirement is 2.42 times less risky than Massmutual Premier. It trades about -0.13 of its potential returns per unit of risk. Massmutual Premier Small is currently generating about -0.2 per unit of risk. If you would invest 1,390 in Voya Target Retirement on October 11, 2024 and sell it today you would lose (52.00) from holding Voya Target Retirement or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Voya Target Retirement vs. Massmutual Premier Small
Performance |
| Timeline |
| Voya Target Retirement |
| Massmutual Premier Small |
Voya Target and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Target and Massmutual Premier
The main advantage of trading using opposite Voya Target and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Target 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.| Voya Target vs. Ultra Short Fixed Income | Voya Target vs. Siit Ultra Short | Voya Target vs. Aamhimco Short Duration | Voya Target vs. Touchstone Ultra Short |
| Massmutual Premier vs. Voya Target Retirement | Massmutual Premier vs. Jp Morgan Smartretirement | Massmutual Premier vs. Putnam Retirement Advantage | Massmutual Premier vs. Qs Moderate Growth |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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