Correlation Between Global Resources and Massmutual Premier
Can any of the company-specific risk be diversified away by investing in both Global Resources 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 Global Resources and Massmutual Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Resources Fund and Massmutual Premier Diversified, you can compare the effects of market volatilities on Global Resources 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 Global Resources with a short position of Massmutual Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Resources and Massmutual Premier.
Diversification Opportunities for Global Resources and Massmutual Premier
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and MASSMUTUAL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Global Resources Fund and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Global Resources 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 Global Resources Fund 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 Global Resources i.e., Global Resources and Massmutual Premier go up and down completely randomly.
Pair Corralation between Global Resources and Massmutual Premier
Assuming the 90 days horizon Global Resources Fund is expected to generate 9.19 times more return on investment than Massmutual Premier. However, Global Resources is 9.19 times more volatile than Massmutual Premier Diversified. It trades about 0.25 of its potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.23 per unit of risk. If you would invest 494.00 in Global Resources Fund on August 31, 2025 and sell it today you would earn a total of 141.00 from holding Global Resources Fund or generate 28.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Resources Fund vs. Massmutual Premier Diversified
Performance |
| Timeline |
| Global Resources |
| Massmutual Premier |
Global Resources and Massmutual Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Resources and Massmutual Premier
The main advantage of trading using opposite Global Resources and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Resources 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.| Global Resources vs. Gamco Natural Resources | Global Resources vs. Calvert Global Energy | Global Resources vs. Jennison Natural Resources | Global Resources vs. Hennessy Bp Energy |
| Massmutual Premier vs. Massmutual Premier E | Massmutual Premier vs. Massmutual Select Mid | Massmutual Premier vs. Massmutual Select Small | Massmutual Premier 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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