Correlation Between MINT Income and JFT Strategies
Can any of the company-specific risk be diversified away by investing in both MINT Income 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 MINT Income and JFT Strategies 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 JFT Strategies, you can compare the effects of market volatilities on MINT Income 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 MINT Income with a short position of JFT Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and JFT Strategies.
Diversification Opportunities for MINT Income and JFT Strategies
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MINT and JFT is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and JFT Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFT Strategies 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 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 MINT Income i.e., MINT Income and JFT Strategies go up and down completely randomly.
Pair Corralation between MINT Income and JFT Strategies
Assuming the 90 days trading horizon MINT Income Fund is expected to generate 1.01 times more return on investment than JFT Strategies. However, MINT Income is 1.01 times more volatile than JFT Strategies. It trades about 0.1 of its potential returns per unit of risk. JFT Strategies is currently generating about -0.02 per unit of risk. If you would invest 688.00 in MINT Income Fund on August 28, 2024 and sell it today you would earn a total of 74.00 from holding MINT Income Fund or generate 10.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MINT Income Fund vs. JFT Strategies
Performance |
| Timeline |
| MINT Income Fund |
| JFT Strategies |
MINT Income and JFT Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINT Income and JFT Strategies
The main advantage of trading using opposite MINT Income and JFT Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income 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.| MINT Income vs. Blue Ribbon Income | MINT Income vs. Income Financial Trust | MINT Income vs. Precious Metals And | MINT Income vs. Canadian High 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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