Correlation Between D Box and Intact Financial
Can any of the company-specific risk be diversified away by investing in both D Box and Intact Financial 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 D Box and Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between D Box Technologies and Intact Financial, you can compare the effects of market volatilities on D Box and Intact Financial 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 D Box with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of D Box and Intact Financial.
Diversification Opportunities for D Box and Intact Financial
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DBO and Intact is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding D Box Technologies and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial and D Box 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 D Box Technologies are associated (or correlated) with Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial has no effect on the direction of D Box i.e., D Box and Intact Financial go up and down completely randomly.
Pair Corralation between D Box and Intact Financial
Assuming the 90 days trading horizon D Box Technologies is expected to generate 6.28 times more return on investment than Intact Financial. However, D Box is 6.28 times more volatile than Intact Financial. It trades about 0.07 of its potential returns per unit of risk. Intact Financial is currently generating about 0.09 per unit of risk. If you would invest 9.00 in D Box Technologies on October 20, 2024 and sell it today you would earn a total of 7.00 from holding D Box Technologies or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
D Box Technologies vs. Intact Financial
Performance |
| Timeline |
| D Box Technologies |
| Intact Financial |
D Box and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with D Box and Intact Financial
The main advantage of trading using opposite D Box and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if D Box position performs unexpectedly, Intact Financial 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 Intact Financial will offset losses from the drop in Intact Financial's long position.| D Box vs. Baylin Technologies | D Box vs. Colabor Group | D Box vs. Knight Therapeutics | D Box vs. StageZero Life Sciences |
| Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
Check out your portfolio center.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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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