Correlation Between Bloom Select and JFT Strategies
Can any of the company-specific risk be diversified away by investing in both Bloom Select and JFT Strategies 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 Bloom Select and JFT Strategies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloom Select Income and JFT Strategies, you can compare the effects of market volatilities on Bloom Select and JFT Strategies 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 Bloom Select with a short position of JFT Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloom Select and JFT Strategies.
Diversification Opportunities for Bloom Select and JFT Strategies
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloom and JFT is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bloom Select Income and JFT Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFT Strategies and Bloom 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 Bloom Select Income are associated (or correlated) with JFT Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JFT Strategies has no effect on the direction of Bloom Select i.e., Bloom Select and JFT Strategies go up and down completely randomly.
Pair Corralation between Bloom Select and JFT Strategies
Assuming the 90 days trading horizon Bloom Select Income is expected to under-perform the JFT Strategies. In addition to that, Bloom Select is 2.51 times more volatile than JFT Strategies. It trades about -0.11 of its total potential returns per unit of risk. JFT Strategies is currently generating about -0.08 per unit of volatility. If you would invest 2,490 in JFT Strategies on August 28, 2024 and sell it today you would lose (37.00) from holding JFT Strategies or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Bloom Select Income vs. JFT Strategies
Performance |
| Timeline |
| Bloom Select Income |
| JFT Strategies |
Bloom Select and JFT Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloom Select and JFT Strategies
The main advantage of trading using opposite Bloom Select and JFT Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloom Select position performs unexpectedly, JFT Strategies 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 JFT Strategies will offset losses from the drop in JFT Strategies' long position.| Bloom Select vs. Canadian High Income | Bloom Select vs. Blue Ribbon Income | Bloom Select vs. Energy Income | Bloom Select vs. Australian REIT Income |
| JFT Strategies vs. Canso Credit Trust | JFT Strategies vs. Australian REIT Income | JFT Strategies vs. MINT Income Fund | JFT Strategies vs. Symphony Floating Rate |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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