Correlation Between Gmo High and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Gmo High and Massmutual Premier 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 Gmo High and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gmo High Yield and Massmutual Premier High, you can compare the effects of market volatilities on Gmo High and Massmutual Premier 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 Gmo High with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gmo High and Massmutual Premier.
Diversification Opportunities for Gmo High and Massmutual Premier
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Gmo and Massmutual is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Gmo High Yield and Massmutual Premier High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier High and Gmo High 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 Gmo High Yield are associated (or correlated) with Massmutual Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Premier High has no effect on the direction of Gmo High i.e., Gmo High and Massmutual Premier go up and down completely randomly.
Pair Corralation between Gmo High and Massmutual Premier
Assuming the 90 days horizon Gmo High Yield is expected to generate 1.2 times more return on investment than Massmutual Premier. However, Gmo High is 1.2 times more volatile than Massmutual Premier High. It trades about 0.32 of its potential returns per unit of risk. Massmutual Premier High is currently generating about 0.39 per unit of risk. If you would invest 1,693 in Gmo High Yield on April 26, 2025 and sell it today you would earn a total of 70.00 from holding Gmo High Yield or generate 4.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gmo High Yield vs. Massmutual Premier High
Performance |
| Timeline |
| Gmo High Yield |
| Massmutual Premier High |
Gmo High and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gmo High and Massmutual Premier
The main advantage of trading using opposite Gmo High and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gmo High position performs unexpectedly, Massmutual Premier 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 Premier will offset losses from the drop in Massmutual Premier's long position.| Gmo High vs. Rmb Mendon Financial | Gmo High vs. T Rowe Price | Gmo High vs. Goldman Sachs Trust | Gmo High vs. Fidelity Advisor Financial |
Check out your portfolio center.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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world |