Correlation Between Ftfa Franklin and Massmutual Retiresmart
Can any of the company-specific risk be diversified away by investing in both Ftfa Franklin and Massmutual Retiresmart 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 Ftfa Franklin and Massmutual Retiresmart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ftfa Franklin Templeton Growth and Massmutual Retiresmart Moderate, you can compare the effects of market volatilities on Ftfa Franklin and Massmutual Retiresmart 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 Ftfa Franklin with a short position of Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ftfa Franklin and Massmutual Retiresmart.
Diversification Opportunities for Ftfa Franklin and Massmutual Retiresmart
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ftfa and Massmutual is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ftfa Franklin Templeton Growth and Massmutual Retiresmart Moderat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart and Ftfa Franklin 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 Ftfa Franklin Templeton Growth are associated (or correlated) with Massmutual Retiresmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Retiresmart has no effect on the direction of Ftfa Franklin i.e., Ftfa Franklin and Massmutual Retiresmart go up and down completely randomly.
Pair Corralation between Ftfa Franklin and Massmutual Retiresmart
Assuming the 90 days horizon Ftfa Franklin Templeton Growth is expected to generate 0.8 times more return on investment than Massmutual Retiresmart. However, Ftfa Franklin Templeton Growth is 1.25 times less risky than Massmutual Retiresmart. It trades about 0.0 of its potential returns per unit of risk. Massmutual Retiresmart Moderate is currently generating about -0.12 per unit of risk. If you would invest 2,072 in Ftfa Franklin Templeton Growth on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Ftfa Franklin Templeton Growth or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ftfa Franklin Templeton Growth vs. Massmutual Retiresmart Moderat
Performance |
Timeline |
Ftfa Franklin Templeton |
Massmutual Retiresmart |
Ftfa Franklin and Massmutual Retiresmart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ftfa Franklin and Massmutual Retiresmart
The main advantage of trading using opposite Ftfa Franklin and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ftfa Franklin position performs unexpectedly, Massmutual Retiresmart 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 Retiresmart will offset losses from the drop in Massmutual Retiresmart's long position.Ftfa Franklin vs. Franklin Mutual Beacon | Ftfa Franklin vs. Templeton Developing Markets | Ftfa Franklin vs. Franklin Mutual Global | Ftfa Franklin vs. Franklin Mutual Global |
Massmutual Retiresmart vs. Ftfa Franklin Templeton Growth | Massmutual Retiresmart vs. Eip Growth And | Massmutual Retiresmart vs. Qs Moderate Growth | Massmutual Retiresmart vs. Praxis Growth Index |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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