Correlation Between Massmutual Premier and Voya Multi-manager

Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Voya Multi-manager 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 Voya Multi-manager 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 Voya Multi Manager Mid, you can compare the effects of market volatilities on Massmutual Premier and Voya Multi-manager 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 Voya Multi-manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Voya Multi-manager.

Diversification Opportunities for Massmutual Premier and Voya Multi-manager

0.0

Correlation Coefficient

Massmutual Premier  Voya Multi-manager

Pay attention - limited upside

The 3 months correlation between Massmutual and Voya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Voya Multi Manager Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Multi Manager 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 Voya Multi-manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Multi Manager has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Voya Multi-manager go up and down completely randomly.

Pair Corralation between Massmutual Premier and Voya Multi-manager

If you would invest  816.00  in Massmutual Premier Diversified on September 4, 2024 and sell it today you would earn a total of  10.00  from holding Massmutual Premier Diversified or generate 1.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Massmutual Premier Diversified  vs.  Voya Multi Manager Mid

Massmutual Premier

Risk-Adjusted Performance

0 of 100

Very Weak

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

Voya Multi Manager

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Massmutual Premier and Voya Multi-manager

The main advantage of trading using opposite Massmutual Premier and Voya Multi-manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Voya Multi-manager 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 Voya Multi-manager will offset losses from the drop in Voya Multi-manager's long position.

The idea behind Massmutual Premier Diversified and Voya Multi Manager Mid 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.