Correlation Between Black Oak and Massmutual Premier

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Can any of the company-specific risk be diversified away by investing in both Black Oak 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 Black Oak and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Oak Emerging and Massmutual Premier Strategic, you can compare the effects of market volatilities on Black Oak 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 Black Oak with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Oak and Massmutual Premier.

Diversification Opportunities for Black Oak and Massmutual Premier

BlackMassmutualDiversified AwayBlackMassmutualDiversified Away100%
-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between Black and Massmutual is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Black Oak Emerging and Massmutual Premier Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Black Oak 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 Black Oak Emerging 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 Black Oak i.e., Black Oak and Massmutual Premier go up and down completely randomly.

Pair Corralation between Black Oak and Massmutual Premier

If you would invest  772.00  in Black Oak Emerging on September 14, 2024 and sell it today you would earn a total of  50.00  from holding Black Oak Emerging or generate 6.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Black Oak Emerging  vs.  Massmutual Premier Strategic

 Performance 
JavaScript chart by amCharts 3.21.15OctNov -20246810
JavaScript chart by amCharts 3.21.15BOGSX MPZRX
       Timeline  
Black Oak Emerging 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Black Oak Emerging are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Black Oak may actually be approaching a critical reversion point that can send shares even higher in January 2025.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec7.77.87.988.18.28.38.4
Massmutual Premier 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Massmutual Premier Strategic has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Massmutual Premier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec9.69.81010.210.410.6

Black Oak and Massmutual Premier Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.51-2.63-1.75-0.870.00.91.832.753.684.61 0.10.20.30.4
JavaScript chart by amCharts 3.21.15BOGSX MPZRX
       Returns  

Pair Trading with Black Oak and Massmutual Premier

The main advantage of trading using opposite Black Oak and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Oak 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.
The idea behind Black Oak Emerging and Massmutual Premier Strategic 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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