Correlation Between Massmutual Prem and Massmutual Advantage
Can any of the company-specific risk be diversified away by investing in both Massmutual Prem 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 Massmutual Prem and Massmutual Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Prem High and Massmutual Advantage Funds, you can compare the effects of market volatilities on Massmutual Prem 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 Massmutual Prem with a short position of Massmutual Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Prem and Massmutual Advantage.
Diversification Opportunities for Massmutual Prem and Massmutual Advantage
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Massmutual and Massmutual is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Prem High and Massmutual Advantage Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Advantage and Massmutual Prem 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 Prem High 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 Massmutual Prem i.e., Massmutual Prem and Massmutual Advantage go up and down completely randomly.
Pair Corralation between Massmutual Prem and Massmutual Advantage
Assuming the 90 days horizon Massmutual Prem is expected to generate 1.88 times less return on investment than Massmutual Advantage. In addition to that, Massmutual Prem is 1.99 times more volatile than Massmutual Advantage Funds. It trades about 0.07 of its total potential returns per unit of risk. Massmutual Advantage Funds is currently generating about 0.25 per unit of volatility. If you would invest 984.00 in Massmutual Advantage Funds on August 22, 2025 and sell it today you would earn a total of 14.00 from holding Massmutual Advantage Funds or generate 1.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Prem High vs. Massmutual Advantage Funds
Performance |
| Timeline |
| Massmutual Prem High |
| Massmutual Advantage |
Massmutual Prem and Massmutual Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Prem and Massmutual Advantage
The main advantage of trading using opposite Massmutual Prem and Massmutual Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Prem 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.| Massmutual Prem vs. Massmutual Premier E | Massmutual Prem vs. Massmutual Select Mid | Massmutual Prem vs. Massmutual Select Small | Massmutual Prem vs. Mm Sp 500 |
| Massmutual Advantage vs. Massmutual Premier E | Massmutual Advantage vs. Massmutual Select Mid | Massmutual Advantage vs. Massmutual Select Small | Massmutual Advantage vs. Mm Sp 500 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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