Correlation Between Pioneer Disciplined and Massmutual Select

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

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

Diversification Opportunities for Pioneer Disciplined and Massmutual Select

-0.56

Correlation Coefficient

Pioneer Disciplined  Massmutual Select

Excellent diversification

The 3 months correlation between Pioneer and MASSMUTUAL is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Disciplined Growth and Massmutual Select Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select and Pioneer Disciplined 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 Pioneer Disciplined Growth 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 Pioneer Disciplined i.e., Pioneer Disciplined and Massmutual Select go up and down completely randomly.

Pair Corralation between Pioneer Disciplined and Massmutual Select

Assuming the 90 days horizon Pioneer Disciplined is expected to generate 5.9 times less return on investment than Massmutual Select. In addition to that, Pioneer Disciplined is 1.44 times more volatile than Massmutual Select Diversified. It trades about 0.03 of its total potential returns per unit of risk. Massmutual Select Diversified is currently generating about 0.24 per unit of volatility. If you would invest  1,048  in Massmutual Select Diversified on September 5, 2024 and sell it today you would earn a total of  57.00  from holding Massmutual Select Diversified or generate 5.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Pioneer Disciplined Growth  vs.  Massmutual Select Diversified

Pioneer Disciplined

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Disciplined Growth are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Pioneer Disciplined 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 Pioneer Disciplined and Massmutual Select

The main advantage of trading using opposite Pioneer Disciplined and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Disciplined 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 Pioneer Disciplined Growth 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.

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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .