Correlation Between Massmutual Select and CAMDEN
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By analyzing existing cross correlation between Massmutual Select Blue and CAMDEN PPTY TR, you can compare the effects of market volatilities on Massmutual Select and CAMDEN 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 Massmutual Select with a short position of CAMDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and CAMDEN.
Diversification Opportunities for Massmutual Select and CAMDEN
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Massmutual and CAMDEN is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Blue and CAMDEN PPTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMDEN PPTY TR and Massmutual 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 Massmutual Select Blue are associated (or correlated) with CAMDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMDEN PPTY TR has no effect on the direction of Massmutual Select i.e., Massmutual Select and CAMDEN go up and down completely randomly.
Pair Corralation between Massmutual Select and CAMDEN
Assuming the 90 days horizon Massmutual Select Blue is expected to generate 1.41 times more return on investment than CAMDEN. However, Massmutual Select is 1.41 times more volatile than CAMDEN PPTY TR. It trades about 0.12 of its potential returns per unit of risk. CAMDEN PPTY TR is currently generating about -0.21 per unit of risk. If you would invest 2,220 in Massmutual Select Blue on September 25, 2024 and sell it today you would earn a total of 166.00 from holding Massmutual Select Blue or generate 7.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 82.54% |
Values | Daily Returns |
Massmutual Select Blue vs. CAMDEN PPTY TR
Performance |
Timeline |
Massmutual Select Blue |
CAMDEN PPTY TR |
Massmutual Select and CAMDEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Massmutual Select and CAMDEN
The main advantage of trading using opposite Massmutual Select and CAMDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, CAMDEN 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 CAMDEN will offset losses from the drop in CAMDEN's long position.Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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