Correlation Between Massmutual Select and Mmngx

Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mmngx 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 Select and Mmngx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Massmutual Select Focused and Mmngx, you can compare the effects of market volatilities on Massmutual Select and Mmngx 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 Select with a short position of Mmngx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mmngx.

Diversification Opportunities for Massmutual Select and Mmngx

0.97

Correlation Coefficient

Massmutual Select  Mmngx

Almost no diversification

The 3 months correlation between Massmutual and Mmngx is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Focused and Mmngx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mmngx and Massmutual Select 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 Select Focused are associated (or correlated) with Mmngx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mmngx has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mmngx go up and down completely randomly.

Pair Corralation between Massmutual Select and Mmngx

Assuming the 90 days horizon Massmutual Select is expected to generate 1.75 times less return on investment than Mmngx. But when comparing it to its historical volatility, Massmutual Select Focused is 1.34 times less risky than Mmngx. It trades about 0.11 of its potential returns per unit of risk. Mmngx is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,751  in Mmngx on May 4, 2025 and sell it today you would earn a total of  144.00  from holding Mmngx or generate 8.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Massmutual Select Focused  vs.  Mmngx

Massmutual Select Focused

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Select Focused are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Massmutual Select is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mmngx

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mmngx are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Mmngx may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Massmutual Select and Mmngx

The main advantage of trading using opposite Massmutual Select and Mmngx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mmngx 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 Mmngx will offset losses from the drop in Mmngx's long position.

The idea behind Massmutual Select Focused and Mmngx 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.