Correlation Between MINT Income and Global Healthcare
Can any of the company-specific risk be diversified away by investing in both MINT Income and Global Healthcare 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 Global Healthcare 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 Global Healthcare Income, you can compare the effects of market volatilities on MINT Income and Global Healthcare 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 Global Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and Global Healthcare.
Diversification Opportunities for MINT Income and Global Healthcare
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MINT and Global is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Global Healthcare Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Healthcare Income 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 Global Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Healthcare Income has no effect on the direction of MINT Income i.e., MINT Income and Global Healthcare go up and down completely randomly.
Pair Corralation between MINT Income and Global Healthcare
Assuming the 90 days trading horizon MINT Income Fund is expected to under-perform the Global Healthcare. In addition to that, MINT Income is 1.6 times more volatile than Global Healthcare Income. It trades about -0.13 of its total potential returns per unit of risk. Global Healthcare Income is currently generating about -0.01 per unit of volatility. If you would invest 815.00 in Global Healthcare Income on November 27, 2024 and sell it today you would lose (2.00) from holding Global Healthcare Income or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
MINT Income Fund vs. Global Healthcare Income
Performance |
| Timeline |
| MINT Income Fund |
| Global Healthcare Income |
MINT Income and Global Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINT Income and Global Healthcare
The main advantage of trading using opposite MINT Income and Global Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income position performs unexpectedly, Global Healthcare 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 Global Healthcare will offset losses from the drop in Global Healthcare'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 |
| Global Healthcare vs. Tech Leaders Income | Global Healthcare vs. BetaPro SPTSX 60 | Global Healthcare vs. Brompton Global Dividend | Global Healthcare vs. Global X Active |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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