Correlation Between Massmutual Premier and Federated Mdt
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Federated Mdt 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 Premier and Federated Mdt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Diversified and Federated Mdt Balanced, you can compare the effects of market volatilities on Massmutual Premier and Federated Mdt 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 Premier with a short position of Federated Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Federated Mdt.
Diversification Opportunities for Massmutual Premier and Federated Mdt
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Massmutual and Federated is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and Federated Mdt Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Balanced and Massmutual Premier 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 Premier Diversified are associated (or correlated) with Federated Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Balanced has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Federated Mdt go up and down completely randomly.
Pair Corralation between Massmutual Premier and Federated Mdt
Assuming the 90 days horizon Massmutual Premier is expected to generate 4.3 times less return on investment than Federated Mdt. But when comparing it to its historical volatility, Massmutual Premier Diversified is 2.97 times less risky than Federated Mdt. It trades about 0.05 of its potential returns per unit of risk. Federated Mdt Balanced is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,361 in Federated Mdt Balanced on September 10, 2025 and sell it today you would earn a total of 48.00 from holding Federated Mdt Balanced or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. Federated Mdt Balanced
Performance |
| Timeline |
| Massmutual Premier |
| Federated Mdt Balanced |
Massmutual Premier and Federated Mdt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Federated Mdt
The main advantage of trading using opposite Massmutual Premier and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Federated Mdt 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 Federated Mdt will offset losses from the drop in Federated Mdt's long position.| Massmutual Premier vs. Dodge Income Fund | Massmutual Premier vs. Dodge Cox Income | Massmutual Premier vs. Strategic Advisers Fidelity | Massmutual Premier vs. Metropolitan West Total |
| Federated Mdt vs. Rmb Mendon Financial | Federated Mdt vs. Gabelli Global Financial | Federated Mdt vs. Davis Financial Fund | Federated Mdt vs. 1919 Financial Services |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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