Correlation Between Dreyfus Active and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Dreyfus Active 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 Dreyfus Active and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Active Midcap and Massmutual Premier Diversified, you can compare the effects of market volatilities on Dreyfus Active 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 Dreyfus Active with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Active and Massmutual Premier.
Diversification Opportunities for Dreyfus Active and Massmutual Premier
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dreyfus and Massmutual is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Active Midcap and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Dreyfus Active 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 Dreyfus Active Midcap 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 Dreyfus Active i.e., Dreyfus Active and Massmutual Premier go up and down completely randomly.
Pair Corralation between Dreyfus Active and Massmutual Premier
Assuming the 90 days horizon Dreyfus Active Midcap is expected to generate 2.78 times more return on investment than Massmutual Premier. However, Dreyfus Active is 2.78 times more volatile than Massmutual Premier Diversified. It trades about 0.24 of its potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.01 per unit of risk. If you would invest 6,085 in Dreyfus Active Midcap on September 3, 2024 and sell it today you would earn a total of 793.00 from holding Dreyfus Active Midcap or generate 13.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dreyfus Active Midcap vs. Massmutual Premier Diversified
Performance |
Timeline |
Dreyfus Active Midcap |
Massmutual Premier |
Dreyfus Active and Massmutual Premier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dreyfus Active and Massmutual Premier
The main advantage of trading using opposite Dreyfus Active and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Active 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.Dreyfus Active vs. Huber Capital Diversified | Dreyfus Active vs. American Funds Conservative | Dreyfus Active vs. Massmutual Premier Diversified | Dreyfus Active vs. Fidelity Advisor Diversified |
Massmutual Premier vs. Dreyfusstandish Global Fixed | Massmutual Premier vs. Nationwide Global Equity | Massmutual Premier vs. Legg Mason Global | Massmutual Premier vs. Barings Global Floating |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |