Correlation Between Massmutual Premier and One Choice
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and One Choice 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 One Choice 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 One Choice 2040, you can compare the effects of market volatilities on Massmutual Premier and One Choice 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 One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and One Choice.
Diversification Opportunities for Massmutual Premier and One Choice
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MASSMUTUAL and One is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Diversified and One Choice 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice 2040 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 One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice 2040 has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and One Choice go up and down completely randomly.
Pair Corralation between Massmutual Premier and One Choice
Assuming the 90 days horizon Massmutual Premier Diversified is expected to generate 0.41 times more return on investment than One Choice. However, Massmutual Premier Diversified is 2.44 times less risky than One Choice. It trades about 0.19 of its potential returns per unit of risk. One Choice 2040 is currently generating about 0.07 per unit of risk. If you would invest 829.00 in Massmutual Premier Diversified on August 28, 2025 and sell it today you would earn a total of 18.00 from holding Massmutual Premier Diversified or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier Diversified vs. One Choice 2040
Performance |
| Timeline |
| Massmutual Premier |
| One Choice 2040 |
Massmutual Premier and One Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and One Choice
The main advantage of trading using opposite Massmutual Premier and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.| Massmutual Premier vs. Gamco Natural Resources | Massmutual Premier vs. Firsthand Alternative Energy | Massmutual Premier vs. Global Resources Fund | Massmutual Premier vs. Blackrock All Cap Energy |
| One Choice vs. Mid Cap Value Profund | One Choice vs. Small Cap Value Profund | One Choice vs. Small Cap Growth Profund | One Choice vs. Ultrasmall Cap Profund Ultrasmall Cap |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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