Correlation Between MINT Income and Global Dividend

Can any of the company-specific risk be diversified away by investing in both MINT Income and Global Dividend 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 Global Dividend 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 Global Dividend Growth, you can compare the effects of market volatilities on MINT Income and Global Dividend 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 Global Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of MINT Income and Global Dividend.

Diversification Opportunities for MINT Income and Global Dividend

0.0

Correlation Coefficient

MINT Income  Global Dividend

Pay attention - limited upside

The 3 months correlation between MINT and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Global Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Dividend Growth 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 Global Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Dividend Growth has no effect on the direction of MINT Income i.e., MINT Income and Global Dividend go up and down completely randomly.

Pair Corralation between MINT Income and Global Dividend

Assuming the 90 days trading horizon MINT Income is expected to generate 1.57 times less return on investment than Global Dividend. But when comparing it to its historical volatility, MINT Income Fund is 1.14 times less risky than Global Dividend. It trades about 0.1 of its potential returns per unit of risk. Global Dividend Growth is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,059  in Global Dividend Growth on October 4, 2024 and sell it today you would earn a total of  93.00  from holding Global Dividend Growth or generate 8.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MINT Income Fund  vs.  Global Dividend Growth

MINT Income Fund

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MINT Income Fund are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. 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.

Global Dividend Growth

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Dividend Growth are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Global Dividend may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with MINT Income and Global Dividend

The main advantage of trading using opposite MINT Income and Global Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MINT Income position performs unexpectedly, Global Dividend 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 Global Dividend will offset losses from the drop in Global Dividend's long position.

The idea behind MINT Income Fund and Global Dividend Growth 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.