Correlation Between Massmutual Select and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Massmutual Select 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 Massmutual Select and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Total and Massmutual Premier Balanced, you can compare the effects of market volatilities on Massmutual Select 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 Massmutual Select with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Massmutual Premier.
Diversification Opportunities for Massmutual Select and Massmutual Premier
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Massmutual and Massmutual is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Total and Massmutual Premier Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier 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 Total 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 Massmutual Select i.e., Massmutual Select and Massmutual Premier go up and down completely randomly.
Pair Corralation between Massmutual Select and Massmutual Premier
Assuming the 90 days horizon Massmutual Select Total is expected to under-perform the Massmutual Premier. But the mutual fund apears to be less risky and, when comparing its historical volatility, Massmutual Select Total is 1.28 times less risky than Massmutual Premier. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Massmutual Premier Balanced is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,181 in Massmutual Premier Balanced on September 5, 2024 and sell it today you would earn a total of 60.00 from holding Massmutual Premier Balanced or generate 5.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Massmutual Select Total vs. Massmutual Premier Balanced
Performance |
Timeline |
Massmutual Select Total |
Massmutual Premier |
Massmutual Select and Massmutual Premier Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Massmutual Select and Massmutual Premier
The main advantage of trading using opposite Massmutual Select and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select 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.Massmutual Select vs. American Century Etf | Massmutual Select vs. Amg River Road | Massmutual Select vs. Ultrasmall Cap Profund Ultrasmall Cap | Massmutual Select vs. Applied Finance Explorer |
Massmutual Premier vs. Massmutual Select Total | Massmutual Premier vs. Massmutual Select Total | Massmutual Premier vs. Massmutual Select Total | Massmutual Premier vs. Massmutual Select Total |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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