Correlation Between Massmutual Retiresmart and Archer Multi

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

By analyzing existing cross correlation between Massmutual Retiresmart Moderate and Archer Multi Cap, you can compare the effects of market volatilities on Massmutual Retiresmart and Archer Multi 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 Retiresmart with a short position of Archer Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Retiresmart and Archer Multi.

Diversification Opportunities for Massmutual Retiresmart and Archer Multi

0.46

Correlation Coefficient

Massmutual Retiresmart  Archer Multi

Very weak diversification

The 3 months correlation between Massmutual and Archer is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Retiresmart Moderat and Archer Multi Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Multi Cap and Massmutual Retiresmart 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 Retiresmart Moderate are associated (or correlated) with Archer Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Multi Cap has no effect on the direction of Massmutual Retiresmart i.e., Massmutual Retiresmart and Archer Multi go up and down completely randomly.

Pair Corralation between Massmutual Retiresmart and Archer Multi

Assuming the 90 days horizon Massmutual Retiresmart Moderate is expected to under-perform the Archer Multi. But the mutual fund apears to be less risky and, when comparing its historical volatility, Massmutual Retiresmart Moderate is 1.39 times less risky than Archer Multi. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Archer Multi Cap is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,473  in Archer Multi Cap on October 8, 2024 and sell it today you would lose (10.00) from holding Archer Multi Cap or give up 0.68% of portfolio value over 90 days.

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

Massmutual Retiresmart Moderat  vs.  Archer Multi Cap

Massmutual Retiresmart

Risk-Adjusted Performance

0 of 100

Very Weak

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

Archer Multi Cap

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Archer Multi Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Archer Multi 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 Retiresmart and Archer Multi

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

The idea behind Massmutual Retiresmart Moderate and Archer Multi Cap 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.