Correlation Between Massmutual Select and International Small

Can any of the company-specific risk be diversified away by investing in both Massmutual Select and International Small 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 Select and International Small into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Massmutual Select Diversified and International Small Pany, you can compare the effects of market volatilities on Massmutual Select and International Small 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 International Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and International Small.

Diversification Opportunities for Massmutual Select and International Small

0.0

Correlation Coefficient

Massmutual Select  International Small

Pay attention - limited upside

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

Pair Corralation between Massmutual Select and International Small

Assuming the 90 days horizon Massmutual Select is expected to generate 2.4 times less return on investment than International Small. In addition to that, Massmutual Select is 1.44 times more volatile than International Small Pany. It trades about 0.01 of its total potential returns per unit of risk. International Small Pany is currently generating about 0.04 per unit of volatility. If you would invest  887.00  in International Small Pany on September 5, 2024 and sell it today you would earn a total of  167.00  from holding International Small Pany or generate 18.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Massmutual Select Diversified  vs.  International Small Pany

Massmutual Select

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Massmutual Select Diversified has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

International Small Pany

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days International Small Pany has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, International Small 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 Select and International Small

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

The idea behind Massmutual Select Diversified and International Small Pany 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.