Correlation Between JFT Strategies and MINT Income

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

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

Diversification Opportunities for JFT Strategies and MINT Income

0.18

Correlation Coefficient

JFT Strategies  MINT Income

Average diversification

The 3 months correlation between JFT and MINT is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding JFT Strategies 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 JFT Strategies 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 JFT Strategies 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 JFT Strategies i.e., JFT Strategies and MINT Income go up and down completely randomly.

Pair Corralation between JFT Strategies and MINT Income

Assuming the 90 days trading horizon JFT Strategies is expected to under-perform the MINT Income. But the fund apears to be less risky and, when comparing its historical volatility, JFT Strategies is 1.25 times less risky than MINT Income. The fund trades about -0.01 of its potential returns per unit of risk. The MINT Income Fund is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  627.00  in MINT Income Fund on April 21, 2025 and sell it today you would earn a total of  98.00  from holding MINT Income Fund or generate 15.63% return on investment over 90 days.

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

JFT Strategies  vs.  MINT Income Fund

JFT Strategies

Risk-Adjusted Performance

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.

MINT Income Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MINT Income Fund are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, MINT Income sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JFT Strategies and MINT Income

The main advantage of trading using opposite JFT Strategies and MINT Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JFT Strategies 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 JFT Strategies 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.