Correlation Between MINT Income and Starlight Multi
Can any of the company-specific risk be diversified away by investing in both MINT Income and Starlight Multi 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 Starlight Multi 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 Starlight Multi Family Core, you can compare the effects of market volatilities on MINT Income and Starlight Multi 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 Starlight Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and Starlight Multi.
Diversification Opportunities for MINT Income and Starlight Multi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MINT and Starlight is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Starlight Multi Family Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starlight Multi Family 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 Starlight Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starlight Multi Family has no effect on the direction of MINT Income i.e., MINT Income and Starlight Multi go up and down completely randomly.
Pair Corralation between MINT Income and Starlight Multi
Assuming the 90 days trading horizon MINT Income Fund is expected to generate 0.17 times more return on investment than Starlight Multi. However, MINT Income Fund is 5.98 times less risky than Starlight Multi. It trades about 0.12 of its potential returns per unit of risk. Starlight Multi Family Core is currently generating about -0.04 per unit of risk. If you would invest 624.00 in MINT Income Fund on September 1, 2024 and sell it today you would earn a total of 127.00 from holding MINT Income Fund or generate 20.35% 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. Starlight Multi Family Core
Performance |
| Timeline |
| MINT Income Fund |
| Starlight Multi Family |
MINT Income and Starlight Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MINT Income and Starlight Multi
The main advantage of trading using opposite MINT Income and Starlight Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income position performs unexpectedly, Starlight Multi 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 Starlight Multi will offset losses from the drop in Starlight Multi'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 |
| Starlight Multi vs. Mackenzie Canadian Growth | Starlight Multi vs. TD Dividend Growth | Starlight Multi vs. Fidelity Canadian Growth |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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