Correlation Between Mmnwx and Massmutual Advantage

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

Diversification Opportunities for Mmnwx and Massmutual Advantage

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Mmnwx and Massmutual is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mmnwx and Massmutual Advantage Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Advantage and Mmnwx 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 Mmnwx are associated (or correlated) with Massmutual Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Advantage has no effect on the direction of Mmnwx i.e., Mmnwx and Massmutual Advantage go up and down completely randomly.

Pair Corralation between Mmnwx and Massmutual Advantage

Assuming the 90 days horizon Mmnwx is expected to generate 2.35 times more return on investment than Massmutual Advantage. However, Mmnwx is 2.35 times more volatile than Massmutual Advantage Funds. It trades about 0.18 of its potential returns per unit of risk. Massmutual Advantage Funds is currently generating about 0.24 per unit of risk. If you would invest  912.00  in Mmnwx on August 15, 2025 and sell it today you would earn a total of  22.00  from holding Mmnwx or generate 2.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy98.44%
ValuesDaily Returns

Mmnwx  vs.  Massmutual Advantage Funds

 Performance 
       Timeline  
Mmnwx 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mmnwx are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Mmnwx is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Massmutual Advantage 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Advantage Funds are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Massmutual Advantage is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mmnwx and Massmutual Advantage Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mmnwx and Massmutual Advantage

The main advantage of trading using opposite Mmnwx and Massmutual Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mmnwx position performs unexpectedly, Massmutual Advantage 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 Advantage will offset losses from the drop in Massmutual Advantage's long position.
The idea behind Mmnwx and Massmutual Advantage Funds 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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