Correlation Between Glg Intl and Massmutual Select
Can any of the company-specific risk be diversified away by investing in both Glg Intl 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 Glg Intl and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Massmutual Select Total, you can compare the effects of market volatilities on Glg Intl 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 Glg Intl with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Massmutual Select.
Diversification Opportunities for Glg Intl and Massmutual Select
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glg and Massmutual is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Massmutual Select Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Total and Glg Intl 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 Glg Intl Small 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 Total has no effect on the direction of Glg Intl i.e., Glg Intl and Massmutual Select go up and down completely randomly.
Pair Corralation between Glg Intl and Massmutual Select
Assuming the 90 days horizon Glg Intl Small is expected to under-perform the Massmutual Select. In addition to that, Glg Intl is 3.51 times more volatile than Massmutual Select Total. It trades about -0.03 of its total potential returns per unit of risk. Massmutual Select Total is currently generating about 0.16 per unit of volatility. If you would invest 812.00 in Massmutual Select Total on December 22, 2024 and sell it today you would earn a total of 27.00 from holding Massmutual Select Total or generate 3.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Glg Intl Small vs. Massmutual Select Total
Performance |
Timeline |
Glg Intl Small |
Massmutual Select Total |
Glg Intl and Massmutual Select Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Glg Intl and Massmutual Select
The main advantage of trading using opposite Glg Intl and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl 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.Glg Intl vs. Rbc Bluebay Global | Glg Intl vs. Scharf Global Opportunity | Glg Intl vs. Rbb Fund | Glg Intl vs. Aqr Global Macro |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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