Correlation Between Mmnbx and Massmutual Premier

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Can any of the company-specific risk be diversified away by investing in both Mmnbx 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 Mmnbx and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mmnbx and Massmutual Premier E, you can compare the effects of market volatilities on Mmnbx 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 Mmnbx with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mmnbx and Massmutual Premier.

Diversification Opportunities for Mmnbx and Massmutual Premier

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Mmnbx and Massmutual is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mmnbx and Massmutual Premier E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Mmnbx 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 Mmnbx 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 has no effect on the direction of Mmnbx i.e., Mmnbx and Massmutual Premier go up and down completely randomly.

Pair Corralation between Mmnbx and Massmutual Premier

Assuming the 90 days horizon Mmnbx is expected to generate 2.81 times more return on investment than Massmutual Premier. However, Mmnbx is 2.81 times more volatile than Massmutual Premier E. It trades about 0.09 of its potential returns per unit of risk. Massmutual Premier E is currently generating about 0.16 per unit of risk. If you would invest  796.00  in Mmnbx on August 19, 2025 and sell it today you would earn a total of  27.00  from holding Mmnbx or generate 3.39% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Mmnbx  vs.  Massmutual Premier E

 Performance 
       Timeline  
Mmnbx 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mmnbx are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Mmnbx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Massmutual Premier 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Premier E are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental drivers, Massmutual Premier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mmnbx and Massmutual Premier Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mmnbx and Massmutual Premier

The main advantage of trading using opposite Mmnbx and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mmnbx 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.
The idea behind Mmnbx and Massmutual Premier E 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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