Correlation Between Massmutual Premier and Prudential Short
Can any of the company-specific risk be diversified away by investing in both Massmutual Premier and Prudential Short 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 Prudential Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Premier Short Duration and Prudential Short Duration, you can compare the effects of market volatilities on Massmutual Premier and Prudential Short 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 Prudential Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Premier and Prudential Short.
Diversification Opportunities for Massmutual Premier and Prudential Short
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between MASSMUTUAL and Prudential is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Premier Short Durat and Prudential Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prudential Short Duration 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 Short Duration are associated (or correlated) with Prudential Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prudential Short Duration has no effect on the direction of Massmutual Premier i.e., Massmutual Premier and Prudential Short go up and down completely randomly.
Pair Corralation between Massmutual Premier and Prudential Short
Assuming the 90 days horizon Massmutual Premier is expected to generate 1.36 times less return on investment than Prudential Short. But when comparing it to its historical volatility, Massmutual Premier Short Duration is 1.36 times less risky than Prudential Short. It trades about 0.26 of its potential returns per unit of risk. Prudential Short Duration is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 832.00 in Prudential Short Duration on June 2, 2025 and sell it today you would earn a total of 21.00 from holding Prudential Short Duration or generate 2.52% 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 Short Durat vs. Prudential Short Duration
Performance |
| Timeline |
| Massmutual Premier |
| Prudential Short Duration |
Massmutual Premier and Prudential Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Premier and Prudential Short
The main advantage of trading using opposite Massmutual Premier and Prudential Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Premier position performs unexpectedly, Prudential Short 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 Prudential Short will offset losses from the drop in Prudential Short's long position.| Massmutual Premier vs. Massmutual Premier Balanced | Massmutual Premier vs. Massmutual Select T | Massmutual Premier vs. Massmutual Select T | Massmutual Premier vs. Massmutual Select T |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |