Correlation Between Artisan Select and Massmutual Select

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

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

Diversification Opportunities for Artisan Select and Massmutual Select

0.52

Correlation Coefficient

Artisan Select  Massmutual Select

Very weak diversification

The 3 months correlation between Artisan and Massmutual is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Select Equity and Massmutual Select Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Focused and Artisan 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 Artisan Select Equity 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 Focused has no effect on the direction of Artisan Select i.e., Artisan Select and Massmutual Select go up and down completely randomly.

Pair Corralation between Artisan Select and Massmutual Select

Assuming the 90 days horizon Artisan Select Equity is expected to generate 0.95 times more return on investment than Massmutual Select. However, Artisan Select Equity is 1.06 times less risky than Massmutual Select. It trades about 0.09 of its potential returns per unit of risk. Massmutual Select Focused is currently generating about 0.01 per unit of risk. If you would invest  1,134  in Artisan Select Equity on October 9, 2024 and sell it today you would earn a total of  411.00  from holding Artisan Select Equity or generate 36.24% return on investment over 90 days.

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

Artisan Select Equity  vs.  Massmutual Select Focused

Artisan Select Equity

Risk-Adjusted Performance

0 of 100

Very Weak

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

Massmutual Select Focused

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massmutual Select Focused 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 February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Artisan Select and Massmutual Select

The main advantage of trading using opposite Artisan Select and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Select 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 Artisan Select Equity and Massmutual Select Focused 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.