Correlation Between Victory Special and Massmutual Premier

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

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

Diversification Opportunities for Victory Special and Massmutual Premier

-0.66

Correlation Coefficient

Victory Special  Massmutual Premier

Excellent diversification

The 3 months correlation between Victory and Massmutual is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Victory Special Value and Massmutual Premier Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Premier and Victory Special 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 Victory Special Value 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 Victory Special i.e., Victory Special and Massmutual Premier go up and down completely randomly.

Pair Corralation between Victory Special and Massmutual Premier

Assuming the 90 days horizon Victory Special Value is expected to under-perform the Massmutual Premier. In addition to that, Victory Special is 154.43 times more volatile than Massmutual Premier Diversified. It trades about -0.58 of its total potential returns per unit of risk. Massmutual Premier Diversified is currently generating about 0.17 per unit of volatility. If you would invest  813.00  in Massmutual Premier Diversified on May 7, 2025 and sell it today you would earn a total of  22.00  from holding Massmutual Premier Diversified or generate 2.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.92%
Values	Daily Returns

Victory Special Value  vs.  Massmutual Premier Diversified

Victory Special Value

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Special Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Massmutual Premier

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Premier Diversified are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Massmutual Premier is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Victory Special and Massmutual Premier

The main advantage of trading using opposite Victory Special and Massmutual Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Special 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.

The idea behind Victory Special Value and Massmutual Premier Diversified 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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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.