Correlation Between MASSMUTUAL RETIRESMART and BlackRock Global

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

Diversification Opportunities for MASSMUTUAL RETIRESMART and BlackRock Global

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between MASSMUTUAL and BlackRock is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding MASSMUTUAL RETIRESMART MODERAT and BlackRock Global Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Global Long and MASSMUTUAL RETIRESMART 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 RETIRESMART MODERATE are associated (or correlated) with BlackRock Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Global Long has no effect on the direction of MASSMUTUAL RETIRESMART i.e., MASSMUTUAL RETIRESMART and BlackRock Global go up and down completely randomly.

Pair Corralation between MASSMUTUAL RETIRESMART and BlackRock Global

Assuming the 90 days horizon MASSMUTUAL RETIRESMART MODERATE is expected to generate 2.9 times more return on investment than BlackRock Global. However, MASSMUTUAL RETIRESMART is 2.9 times more volatile than BlackRock Global Long. It trades about 0.29 of its potential returns per unit of risk. BlackRock Global Long is currently generating about 0.07 per unit of risk. If you would invest  841.00  in MASSMUTUAL RETIRESMART MODERATE on September 6, 2022 and sell it today you would earn a total of  55.00  from holding MASSMUTUAL RETIRESMART MODERATE or generate 6.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MASSMUTUAL RETIRESMART MODERAT  vs.  BlackRock Global Long

 Performance (%) 
       Timeline  
MASSMUTUAL RETIRESMART 
MASSMUTUAL Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in MASSMUTUAL RETIRESMART MODERATE are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, MASSMUTUAL RETIRESMART is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

MASSMUTUAL Price Channel

BlackRock Global Long 
BlackRock Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock Global Long are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, BlackRock Global is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BlackRock Price Channel

MASSMUTUAL RETIRESMART and BlackRock Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MASSMUTUAL RETIRESMART and BlackRock Global

The main advantage of trading using opposite MASSMUTUAL RETIRESMART and BlackRock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASSMUTUAL RETIRESMART position performs unexpectedly, BlackRock Global 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 BlackRock Global will offset losses from the drop in BlackRock Global's long position.
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The idea behind MASSMUTUAL RETIRESMART MODERATE and BlackRock Global Long 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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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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