Correlation Between Massmutual Premier and Ab Impact
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Ab Impact 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 Massmutual Premier and Ab Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Ab Impact Municipal, you can compare the effects of market volatilities on Massmutual Premier and Ab Impact 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 Premier with a short position of Ab Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Ab Impact.
Diversification Opportunities for Massmutual Premier and Ab Impact
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Massmutual and ABIMX is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Ab Impact Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Impact Municipal and Massmutual Premier 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 Premier Diversified are associated (or correlated) with Ab Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Impact Municipal has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Ab Impact go up and down completely randomly.
Pair Corralation between Massmutual Premier and Ab Impact
Assuming the 90 days horizon Massmutual Premier is expected to generate 1.37 times less return on investment than Ab Impact. In addition to that, Massmutual Premier is 1.17 times more volatile than Ab Impact Municipal. It trades about 0.04 of its total potential returns per unit of risk. Ab Impact Municipal is currently generating about 0.07 per unit of volatility. If you would invest 878.00 in Ab Impact Municipal on September 23, 2024 and sell it today you would earn a total of 94.00 from holding Ab Impact Municipal or generate 10.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Massmutual Premier Diversified vs. Ab Impact Municipal
Performance |
Timeline |
Massmutual Premier |
Ab Impact Municipal |
Massmutual Premier and Ab Impact Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Massmutual Premier and Ab Impact
The main advantage of trading using opposite Massmutual Premier and Ab Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Ab Impact 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 Ab Impact will offset losses from the drop in Ab Impact's long position.Massmutual Premier vs. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap | Massmutual Premier vs. Massmutual Select Mid Cap |
Ab Impact vs. Massmutual Premier Diversified | Ab Impact vs. Oaktree Diversifiedome | Ab Impact vs. Pioneer Diversified High | Ab Impact vs. American Century Diversified |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |