Correlation Between Massmutual Premier and Advent Claymore
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Advent Claymore 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 Advent Claymore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier High and Advent Claymore Convertible, you can compare the effects of market volatilities on Massmutual Premier and Advent Claymore 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 Advent Claymore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Advent Claymore.
Diversification Opportunities for Massmutual Premier and Advent Claymore
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Massmutual and Advent is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier High and Advent Claymore Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Claymore Conv 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 High are associated (or correlated) with Advent Claymore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Claymore Conv has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Advent Claymore go up and down completely randomly.
Pair Corralation between Massmutual Premier and Advent Claymore
Assuming the 90 days horizon Massmutual Premier is expected to generate 2.6 times less return on investment than Advent Claymore. But when comparing it to its historical volatility, Massmutual Premier High is 3.71 times less risky than Advent Claymore. It trades about 0.43 of its potential returns per unit of risk. Advent Claymore Convertible is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,109 in Advent Claymore Convertible on April 22, 2025 and sell it today you would earn a total of 160.00 from holding Advent Claymore Convertible or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Premier High vs. Advent Claymore Convertible
Performance |
| Timeline |
| Massmutual Premier High |
| Advent Claymore Conv |
Massmutual Premier and Advent Claymore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Advent Claymore
The main advantage of trading using opposite Massmutual Premier and Advent Claymore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Advent Claymore 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 Advent Claymore will offset losses from the drop in Advent Claymore's long position.| Massmutual Premier vs. Guidemark Large Cap | Massmutual Premier vs. Transamerica Large Cap | Massmutual Premier vs. Fidelity Large Cap | Massmutual Premier vs. Qs Large Cap |
| Advent Claymore vs. Tiaa Cref Inflation Linked Bond | Advent Claymore vs. Blackrock Inflation Protected | Advent Claymore vs. Short Duration Inflation | Advent Claymore vs. Ab Bond Inflation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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