Correlation Between Eastwood Bio and MINT Income

Can any of the company-specific risk be diversified away by investing in both Eastwood Bio 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 Eastwood Bio and MINT Income into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eastwood Bio Medical Canada and MINT Income Fund, you can compare the effects of market volatilities on Eastwood Bio 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 Eastwood Bio with a short position of MINT Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and MINT Income.

Diversification Opportunities for Eastwood Bio and MINT Income

0.24

Correlation Coefficient

Eastwood Bio  MINT Income

Modest diversification

The 3 months correlation between Eastwood and MINT is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada 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 Eastwood Bio 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 Eastwood Bio Medical Canada 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 Eastwood Bio i.e., Eastwood Bio and MINT Income go up and down completely randomly.

Pair Corralation between Eastwood Bio and MINT Income

Assuming the 90 days horizon Eastwood Bio Medical Canada is expected to under-perform the MINT Income. In addition to that, Eastwood Bio is 10.29 times more volatile than MINT Income Fund. It trades about -0.06 of its total potential returns per unit of risk. MINT Income Fund is currently generating about -0.06 per unit of volatility. If you would invest  781.00  in MINT Income Fund on December 30, 2024 and sell it today you would lose (33.00) from holding MINT Income Fund or give up 4.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Eastwood Bio Medical Canada  vs.  MINT Income Fund

Eastwood Bio Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eastwood Bio Medical Canada has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

MINT Income Fund

Risk-Adjusted Performance

Very Weak

Over the last 90 days MINT Income Fund has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, MINT Income is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eastwood Bio and MINT Income

The main advantage of trading using opposite Eastwood Bio and MINT Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio 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.

The idea behind Eastwood Bio Medical Canada and MINT Income Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.