Correlation Between Fundvantage Trust and Massmutual Select

Can any of the company-specific risk be diversified away by investing in both Fundvantage Trust and Massmutual Select 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 Fundvantage Trust and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fundvantage Trust and Massmutual Select Diversified, you can compare the effects of market volatilities on Fundvantage Trust and Massmutual Select 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 Fundvantage Trust with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundvantage Trust and Massmutual Select.

Diversification Opportunities for Fundvantage Trust and Massmutual Select

0.0

Correlation Coefficient

Fundvantage Trust  Massmutual Select

Pay attention - limited upside

The 3 months correlation between Fundvantage and MASSMUTUAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fundvantage Trust and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Fundvantage Trust 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 Fundvantage Trust are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select has no effect on the direction of Fundvantage Trust i.e., Fundvantage Trust and Massmutual Select go up and down completely randomly.

Pair Corralation between Fundvantage Trust and Massmutual Select

If you would invest  100.00  in Fundvantage Trust on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Fundvantage Trust or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fundvantage Trust   vs.  Massmutual Select Diversified

Fundvantage Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fundvantage Trust has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Fundvantage Trust is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Massmutual Select

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massmutual Select Diversified has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Fundvantage Trust and Massmutual Select

The main advantage of trading using opposite Fundvantage Trust and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundvantage Trust position performs unexpectedly, Massmutual Select 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 Select will offset losses from the drop in Massmutual Select's long position.

The idea behind Fundvantage Trust and Massmutual Select Diversified pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.