Correlation Between Massmutual Select and Pioneer Money

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

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

Diversification Opportunities for Massmutual Select and Pioneer Money

-0.34

Correlation Coefficient

Massmutual Select  Pioneer Money

Very good diversification

The 3 months correlation between Massmutual and Pioneer is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Focused and Pioneer Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Money Market 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 Focused are associated (or correlated) with Pioneer Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Money Market has no effect on the direction of Massmutual Select i.e., Massmutual Select and Pioneer Money go up and down completely randomly.

Pair Corralation between Massmutual Select and Pioneer Money

Assuming the 90 days horizon Massmutual Select is expected to generate 91.59 times less return on investment than Pioneer Money. But when comparing it to its historical volatility, Massmutual Select Focused is 27.46 times less risky than Pioneer Money. It trades about 0.01 of its potential returns per unit of risk. Pioneer Money Market is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  361.00  in Pioneer Money Market on October 10, 2024 and sell it today you would lose (261.00) from holding Pioneer Money Market or give up 72.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.61%
Values	Daily Returns

Massmutual Select Focused  vs.  Pioneer Money Market

Massmutual Select Focused

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massmutual Select Focused 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 February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pioneer Money Market

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Money Market are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Pioneer Money 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 Pioneer Money

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

The idea behind Massmutual Select Focused and Pioneer Money Market 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.