Correlation Between Dividend and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Dividend 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 Dividend and Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dividend 15 Split and Intact Financial Corp, you can compare the effects of market volatilities on Dividend 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 Dividend with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dividend and Intact Financial.
Diversification Opportunities for Dividend and Intact Financial
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dividend and Intact is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Dividend 15 Split and Intact Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial Corp and Dividend 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 Dividend 15 Split 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 Corp has no effect on the direction of Dividend i.e., Dividend and Intact Financial go up and down completely randomly.
Pair Corralation between Dividend and Intact Financial
Assuming the 90 days trading horizon Dividend 15 Split is expected to generate 2.51 times more return on investment than Intact Financial. However, Dividend is 2.51 times more volatile than Intact Financial Corp. It trades about 0.2 of its potential returns per unit of risk. Intact Financial Corp is currently generating about 0.12 per unit of risk. If you would invest 627.00 in Dividend 15 Split on August 28, 2024 and sell it today you would earn a total of 40.00 from holding Dividend 15 Split or generate 6.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dividend 15 Split vs. Intact Financial Corp
Performance |
| Timeline |
| Dividend 15 Split |
| Intact Financial Corp |
Dividend and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dividend and Intact Financial
The main advantage of trading using opposite Dividend and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dividend 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.| Dividend vs. Financial 15 Split | Dividend vs. North American Financial | Dividend vs. Dividend Growth Split | Dividend vs. Life Banc Split |
| Intact Financial vs. Intact Financial Corp | Intact Financial vs. National Bank of | Intact Financial vs. Fairfax Financial Holdings | Intact Financial vs. Fairfax Financial Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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