Correlation Between Massmutual Select and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Siit Emerging 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 Massmutual Select and Siit Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Focused and Siit Emerging Markets, you can compare the effects of market volatilities on Massmutual Select and Siit Emerging 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 Massmutual Select with a short position of Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Siit Emerging.
Diversification Opportunities for Massmutual Select and Siit Emerging
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and Siit is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Focused and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets and Massmutual Select 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 Massmutual Select Focused are associated (or correlated) with Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Massmutual Select i.e., Massmutual Select and Siit Emerging go up and down completely randomly.
Pair Corralation between Massmutual Select and Siit Emerging
Assuming the 90 days horizon Massmutual Select Focused is expected to under-perform the Siit Emerging. In addition to that, Massmutual Select is 1.92 times more volatile than Siit Emerging Markets. It trades about -0.15 of its total potential returns per unit of risk. Siit Emerging Markets is currently generating about -0.07 per unit of volatility. If you would invest 1,010 in Siit Emerging Markets on September 23, 2024 and sell it today you would lose (41.00) from holding Siit Emerging Markets or give up 4.06% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Massmutual Select Focused vs. Siit Emerging Markets
Performance |
Timeline |
Massmutual Select Focused |
Siit Emerging Markets |
Massmutual Select and Siit Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Massmutual Select and Siit Emerging
The main advantage of trading using opposite Massmutual Select and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging's long position.Massmutual Select vs. Chestnut Street Exchange | Massmutual Select vs. Cref Money Market | Massmutual Select vs. Hsbc Treasury Money | Massmutual Select vs. Elfun Government Money |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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