Correlation Between Massmutual Select and Mmngx
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mmngx 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 Select and Mmngx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select T and Mmngx, you can compare the effects of market volatilities on Massmutual Select and Mmngx 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 Select with a short position of Mmngx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mmngx.
Diversification Opportunities for Massmutual Select and Mmngx
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Mmngx is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select T and Mmngx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmngx and Massmutual Select 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 Select T are associated (or correlated) with Mmngx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmngx has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mmngx go up and down completely randomly.
Pair Corralation between Massmutual Select and Mmngx
Assuming the 90 days horizon Massmutual Select is expected to generate 2.63 times less return on investment than Mmngx. But when comparing it to its historical volatility, Massmutual Select T is 4.45 times less risky than Mmngx. It trades about 0.17 of its potential returns per unit of risk. Mmngx is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,853 in Mmngx on June 4, 2025 and sell it today you would earn a total of 88.00 from holding Mmngx or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select T vs. Mmngx
Performance |
| Timeline |
| Massmutual Select |
| Mmngx |
Massmutual Select and Mmngx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mmngx
The main advantage of trading using opposite Massmutual Select and Mmngx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mmngx 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 Mmngx will offset losses from the drop in Mmngx's long position.| Massmutual Select vs. Wabmsx | Massmutual Select vs. Fabwx | Massmutual Select vs. Balanced Fund Retail | Massmutual Select vs. Fbanjx |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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