Correlation Between Fisher Investments and Massmutual Retiresmart

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

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

Diversification Opportunities for Fisher Investments and Massmutual Retiresmart

0.82

Correlation Coefficient

Fisher Investments  Massmutual Retiresmart

Very poor diversification

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

Pair Corralation between Fisher Investments and Massmutual Retiresmart

Assuming the 90 days horizon Fisher Fixed Income is expected to under-perform the Massmutual Retiresmart. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fisher Fixed Income is 1.48 times less risky than Massmutual Retiresmart. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Massmutual Retiresmart Moderate is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  929.00  in Massmutual Retiresmart Moderate on October 6, 2024 and sell it today you would lose (38.00) from holding Massmutual Retiresmart Moderate or give up 4.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	97.62%
Values	Daily Returns

Fisher Fixed Income  vs.  Massmutual Retiresmart Moderat

Fisher Fixed Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fisher Fixed Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Fisher Investments is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Fisher Investments and Massmutual Retiresmart

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

The idea behind Fisher Fixed Income and Massmutual Retiresmart Moderate 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.