Correlation Between Crossmark Steward and Massmutual Select

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

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

Diversification Opportunities for Crossmark Steward and Massmutual Select

0.12

Correlation Coefficient

Crossmark Steward  Massmutual Select

Average diversification

The 3 months correlation between Crossmark and Massmutual is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Crossmark Steward Equity and Massmutual Select Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Mid and Crossmark Steward 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 Crossmark Steward Equity are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Mid has no effect on the direction of Crossmark Steward i.e., Crossmark Steward and Massmutual Select go up and down completely randomly.

Pair Corralation between Crossmark Steward and Massmutual Select

Assuming the 90 days horizon Crossmark Steward is expected to generate 4.13 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Crossmark Steward Equity is 1.72 times less risky than Massmutual Select. It trades about 0.01 of its potential returns per unit of risk. Massmutual Select Mid Cap is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,079  in Massmutual Select Mid Cap on September 25, 2024 and sell it today you would earn a total of  42.00  from holding Massmutual Select Mid Cap or generate 3.89% return on investment over 90 days.

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

Crossmark Steward Equity  vs.  Massmutual Select Mid Cap

Crossmark Steward Equity

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Crossmark Steward Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Massmutual Select Mid

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Massmutual Select Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Crossmark Steward and Massmutual Select

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

The idea behind Crossmark Steward Equity and Massmutual Select Mid 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.