Correlation Between Massmutual Premier and Credit Suisse

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

By analyzing existing cross correlation between Massmutual Premier Inflation Protected and Credit Suisse Multialternative, you can compare the effects of market volatilities on Massmutual Premier and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Credit Suisse.

Diversification Opportunities for Massmutual Premier and Credit Suisse

0.82

Correlation Coefficient

Massmutual Premier  Credit Suisse

Very poor diversification

The 3 months correlation between Massmutual and Credit is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Inflation P and Credit Suisse Multialternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse Multia 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 Inflation Protected are associated (or correlated) with Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse Multia has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Credit Suisse go up and down completely randomly.

Pair Corralation between Massmutual Premier and Credit Suisse

Assuming the 90 days horizon Massmutual Premier Inflation Protected is expected to generate 0.83 times more return on investment than Credit Suisse. However, Massmutual Premier Inflation Protected is 1.2 times less risky than Credit Suisse. It trades about 0.19 of its potential returns per unit of risk. Credit Suisse Multialternative is currently generating about 0.14 per unit of risk. If you would invest  897.00  in Massmutual Premier Inflation Protected on December 23, 2024 and sell it today you would earn a total of  30.00  from holding Massmutual Premier Inflation Protected or generate 3.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Massmutual Premier Inflation P  vs.  Credit Suisse Multialternative

Massmutual Premier

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Premier Inflation Protected are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Massmutual Premier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Credit Suisse Multia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Credit Suisse Multialternative are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Credit Suisse 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 Credit Suisse

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

The idea behind Massmutual Premier Inflation Protected and Credit Suisse Multialternative 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.