Correlation Between 360 Finance and Massmutual Retiresmart

Can any of the company-specific risk be diversified away by investing in both 360 Finance 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 360 Finance and Massmutual Retiresmart into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 360 Finance and Massmutual Retiresmart 2020, you can compare the effects of market volatilities on 360 Finance 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 360 Finance with a short position of Massmutual Retiresmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Massmutual Retiresmart.

Diversification Opportunities for 360 Finance and Massmutual Retiresmart

-0.31

Correlation Coefficient

360 Finance  Massmutual Retiresmart

Very good diversification

The 3 months correlation between 360 and Massmutual is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Massmutual Retiresmart 2020 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Retiresmart and 360 Finance 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 360 Finance 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 360 Finance i.e., 360 Finance and Massmutual Retiresmart go up and down completely randomly.

Pair Corralation between 360 Finance and Massmutual Retiresmart

Given the investment horizon of 90 days 360 Finance is expected to generate 2.21 times more return on investment than Massmutual Retiresmart. However, 360 Finance is 2.21 times more volatile than Massmutual Retiresmart 2020. It trades about 0.16 of its potential returns per unit of risk. Massmutual Retiresmart 2020 is currently generating about -0.26 per unit of risk. If you would invest  3,604  in 360 Finance on October 6, 2024 and sell it today you would earn a total of  265.00  from holding 360 Finance or generate 7.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

360 Finance  vs.  Massmutual Retiresmart 2020

360 Finance

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 360 Finance are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting forward indicators, 360 Finance displayed solid returns over the last few months and may actually be approaching a breakup point.

Massmutual Retiresmart

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massmutual Retiresmart 2020 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 360 Finance and Massmutual Retiresmart

The main advantage of trading using opposite 360 Finance and Massmutual Retiresmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance 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 360 Finance and Massmutual Retiresmart 2020 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 Global Correlations module to find global opportunities by holding instruments from different markets.