Correlation Between MINT Income and JFT Strategies

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

Diversification Opportunities for MINT Income and JFT Strategies

0.17

Correlation Coefficient

MINT Income  JFT Strategies

Average diversification

The 3 months correlation between MINT and JFT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and JFT Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JFT Strategies 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 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 MINT Income i.e., MINT Income and JFT Strategies go up and down completely randomly.

Pair Corralation between MINT Income and JFT Strategies

Assuming the 90 days trading horizon MINT Income Fund is expected to generate 0.73 times more return on investment than JFT Strategies. However, MINT Income Fund is 1.38 times less risky than JFT Strategies. It trades about 0.16 of its potential returns per unit of risk. JFT Strategies is currently generating about -0.03 per unit of risk. If you would invest  745.00  in MINT Income Fund on October 26, 2024 and sell it today you would earn a total of  50.00  from holding MINT Income Fund or generate 6.71% return on investment over 90 days.

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

MINT Income Fund  vs.  JFT Strategies

MINT Income Fund

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MINT Income Fund are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, MINT Income may actually be approaching a critical reversion point that can send shares even higher in February 2025.

JFT Strategies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JFT Strategies has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, JFT Strategies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MINT Income and JFT Strategies

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

The idea behind MINT Income Fund and JFT Strategies 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.