Correlation Between Symphony Floating and JFT Strategies
Can any of the company-specific risk be diversified away by investing in both Symphony Floating 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 Symphony Floating and JFT Strategies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Floating Rate and JFT Strategies, you can compare the effects of market volatilities on Symphony Floating 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 Symphony Floating with a short position of JFT Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Floating and JFT Strategies.
Diversification Opportunities for Symphony Floating and JFT Strategies
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symphony and JFT is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Floating Rate and JFT Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFT Strategies and Symphony Floating 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 Symphony Floating Rate 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 Symphony Floating i.e., Symphony Floating and JFT Strategies go up and down completely randomly.
Pair Corralation between Symphony Floating and JFT Strategies
Assuming the 90 days trading horizon Symphony Floating Rate is expected to generate 0.74 times more return on investment than JFT Strategies. However, Symphony Floating Rate is 1.35 times less risky than JFT Strategies. It trades about 0.06 of its potential returns per unit of risk. JFT Strategies is currently generating about -0.06 per unit of risk. If you would invest 697.00 in Symphony Floating Rate on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Symphony Floating Rate or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Floating Rate vs. JFT Strategies
Performance |
| Timeline |
| Symphony Floating Rate |
| JFT Strategies |
Symphony Floating and JFT Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Floating and JFT Strategies
The main advantage of trading using opposite Symphony Floating and JFT Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Floating 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.| Symphony Floating vs. Tech Leaders Income | Symphony Floating vs. Brompton Global Dividend | Symphony Floating vs. Forstrong Global Income | Symphony Floating vs. iShares Canadian HYBrid |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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