Correlation Between Goldman Sachs and Massmutual Select

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Massmutual Select 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 Goldman Sachs and Massmutual Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Centrated and Massmutual Select Blue, you can compare the effects of market volatilities on Goldman Sachs and Massmutual Select 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 Goldman Sachs with a short position of Massmutual Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Massmutual Select.

Diversification Opportunities for Goldman Sachs and Massmutual Select

0.98
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Goldman and Massmutual is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding GOLDMAN SACHS CENTRATED and MASSMUTUAL SELECT BLUE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Massmutual Select Blue and Goldman Sachs 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 Goldman Sachs Centrated are associated (or correlated) with Massmutual Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Massmutual Select Blue has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Massmutual Select go up and down completely randomly.

Pair Corralation between Goldman Sachs and Massmutual Select

Assuming the 90 days horizon Goldman Sachs is expected to generate 1.49 times less return on investment than Massmutual Select. But when comparing it to its historical volatility, Goldman Sachs Centrated is 1.12 times less risky than Massmutual Select. It trades about 0.1 of its potential returns per unit of risk. Massmutual Select Blue is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,854  in Massmutual Select Blue on December 29, 2023 and sell it today you would earn a total of  48.00  from holding Massmutual Select Blue or generate 2.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

GOLDMAN SACHS CENTRATED  vs.  MASSMUTUAL SELECT BLUE

 Performance 
       Timeline  
Goldman Sachs Centrated 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Centrated are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Massmutual Select Blue 

Risk-Adjusted Performance

16 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Massmutual Select Blue are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Massmutual Select showed solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs and Massmutual Select Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Goldman Sachs and Massmutual Select

The main advantage of trading using opposite Goldman Sachs and Massmutual Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Massmutual Select 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 Select will offset losses from the drop in Massmutual Select's long position.
The idea behind Goldman Sachs Centrated and Massmutual Select Blue 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Share Portfolio
Track or share privately all of your investments from the convenience of any device
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Commodity Directory
Find actively traded commodities issued by global exchanges
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios