Correlation Between MINT Income and Highwood Asset
Can any of the company-specific risk be diversified away by investing in both MINT Income and Highwood Asset 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 MINT Income and Highwood Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MINT Income Fund and Highwood Asset Management, you can compare the effects of market volatilities on MINT Income and Highwood Asset 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 MINT Income with a short position of Highwood Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and Highwood Asset.
Diversification Opportunities for MINT Income and Highwood Asset
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MINT and Highwood is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Highwood Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highwood Asset Management and MINT Income 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 MINT Income Fund are associated (or correlated) with Highwood Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highwood Asset Management has no effect on the direction of MINT Income i.e., MINT Income and Highwood Asset go up and down completely randomly.
Pair Corralation between MINT Income and Highwood Asset
Assuming the 90 days trading horizon MINT Income is expected to generate 1.37 times less return on investment than Highwood Asset. But when comparing it to its historical volatility, MINT Income Fund is 3.94 times less risky than Highwood Asset. It trades about 0.13 of its potential returns per unit of risk. Highwood Asset Management is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Highwood Asset Management on September 14, 2024 and sell it today you would earn a total of 128.00 from holding Highwood Asset Management or generate 27.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINT Income Fund vs. Highwood Asset Management
Performance |
| Timeline |
| MINT Income Fund |
| Highwood Asset Management |
MINT Income and Highwood Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINT Income and Highwood Asset
The main advantage of trading using opposite MINT Income and Highwood Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income position performs unexpectedly, Highwood Asset 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 Highwood Asset will offset losses from the drop in Highwood Asset's long position.| MINT Income vs. Blue Ribbon Income | MINT Income vs. Income Financial Trust | MINT Income vs. Precious Metals And | MINT Income vs. Canadian High Income |
| Highwood Asset vs. MINT Income Fund | Highwood Asset vs. Canadian High Income | Highwood Asset vs. Blue Ribbon Income | Highwood Asset vs. Australian REIT Income |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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