Correlation Between Symphony Floating and MINT Income
Can any of the company-specific risk be diversified away by investing in both Symphony Floating and MINT Income 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 MINT Income 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 MINT Income Fund, you can compare the effects of market volatilities on Symphony Floating and MINT Income 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 MINT Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Floating and MINT Income.
Diversification Opportunities for Symphony Floating and MINT Income
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Symphony and MINT is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Floating Rate and MINT Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MINT Income Fund 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 MINT Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MINT Income Fund has no effect on the direction of Symphony Floating i.e., Symphony Floating and MINT Income go up and down completely randomly.
Pair Corralation between Symphony Floating and MINT Income
Assuming the 90 days trading horizon Symphony Floating is expected to generate 1.03 times less return on investment than MINT Income. But when comparing it to its historical volatility, Symphony Floating Rate is 1.23 times less risky than MINT Income. It trades about 0.07 of its potential returns per unit of risk. MINT Income Fund is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 604.00 in MINT Income Fund on August 31, 2024 and sell it today you would earn a total of 147.00 from holding MINT Income Fund or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Floating Rate vs. MINT Income Fund
Performance |
| Timeline |
| Symphony Floating Rate |
| MINT Income Fund |
Symphony Floating and MINT Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Floating and MINT Income
The main advantage of trading using opposite Symphony Floating and MINT Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Floating position performs unexpectedly, MINT Income 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 MINT Income will offset losses from the drop in MINT Income's 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 |
| MINT Income vs. Blue Ribbon Income | MINT Income vs. Income Financial Trust | MINT Income vs. Precious Metals And | MINT Income vs. Canadian High 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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