Correlation Between Massmutual Retiresmart and Ftfa Franklin
Can any of the company-specific risk be diversified away by investing in both Massmutual Retiresmart and Ftfa Franklin 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 Retiresmart and Ftfa Franklin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Retiresmart Moderate and Ftfa Franklin Templeton Growth, you can compare the effects of market volatilities on Massmutual Retiresmart and Ftfa Franklin 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 Retiresmart with a short position of Ftfa Franklin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Retiresmart and Ftfa Franklin.
Diversification Opportunities for Massmutual Retiresmart and Ftfa Franklin
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Massmutual and Ftfa is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Retiresmart Moderat and Ftfa Franklin Templeton Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ftfa Franklin Templeton and Massmutual Retiresmart 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 Retiresmart Moderate are associated (or correlated) with Ftfa Franklin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ftfa Franklin Templeton has no effect on the direction of Massmutual Retiresmart i.e., Massmutual Retiresmart and Ftfa Franklin go up and down completely randomly.
Pair Corralation between Massmutual Retiresmart and Ftfa Franklin
Assuming the 90 days horizon Massmutual Retiresmart Moderate is expected to under-perform the Ftfa Franklin. In addition to that, Massmutual Retiresmart is 1.25 times more volatile than Ftfa Franklin Templeton Growth. It trades about -0.12 of its total potential returns per unit of risk. Ftfa Franklin Templeton Growth is currently generating about 0.0 per unit of volatility. 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 |
Massmutual Retiresmart Moderat vs. Ftfa Franklin Templeton Growth
Performance |
Timeline |
Massmutual Retiresmart |
Ftfa Franklin Templeton |
Massmutual Retiresmart and Ftfa Franklin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Massmutual Retiresmart and Ftfa Franklin
The main advantage of trading using opposite Massmutual Retiresmart and Ftfa Franklin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Retiresmart position performs unexpectedly, Ftfa Franklin 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 Ftfa Franklin will offset losses from the drop in Ftfa Franklin's long position.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 |
Ftfa Franklin vs. Franklin Mutual Beacon | Ftfa Franklin vs. Templeton Developing Markets | Ftfa Franklin vs. Franklin Mutual Global | Ftfa Franklin vs. Franklin Mutual Global |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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