Correlation Between MINT Income and Symphony Floating

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

Diversification Opportunities for MINT Income and Symphony Floating

0.7

Correlation Coefficient

MINT Income  Symphony Floating

Poor diversification

The 3 months correlation between MINT and Symphony is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding MINT Income Fund and Symphony Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Floating Rate 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 Symphony Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Floating Rate has no effect on the direction of MINT Income i.e., MINT Income and Symphony Floating go up and down completely randomly.

Pair Corralation between MINT Income and Symphony Floating

Assuming the 90 days trading horizon MINT Income Fund is expected to generate 2.26 times more return on investment than Symphony Floating. However, MINT Income is 2.26 times more volatile than Symphony Floating Rate. It trades about 0.1 of its potential returns per unit of risk. Symphony Floating Rate is currently generating about 0.09 per unit of risk. If you would invest  705.00  in MINT Income Fund on September 4, 2024 and sell it today you would earn a total of  46.00  from holding MINT Income Fund or generate 6.52% return on investment over 90 days.

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

MINT Income Fund  vs.  Symphony Floating Rate

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 weak fundamental indicators, MINT Income may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Symphony Floating Rate

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Symphony Floating Rate are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong technical and fundamental indicators, Symphony Floating 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 Symphony Floating

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

The idea behind MINT Income Fund and Symphony Floating Rate 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.