Correlation Between Earth Alive and IA Financial
Can any of the company-specific risk be diversified away by investing in both Earth Alive and IA 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 Earth Alive and IA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Earth Alive Clean and iA Financial, you can compare the effects of market volatilities on Earth Alive and IA 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 Earth Alive with a short position of IA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Earth Alive and IA Financial.
Diversification Opportunities for Earth Alive and IA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Earth and IAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Earth Alive Clean and iA Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iA Financial and Earth Alive 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 Earth Alive Clean are associated (or correlated) with IA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iA Financial has no effect on the direction of Earth Alive i.e., Earth Alive and IA Financial go up and down completely randomly.
Pair Corralation between Earth Alive and IA Financial
If you would invest 12,795 in iA Financial on September 13, 2024 and sell it today you would earn a total of 667.00 from holding iA Financial or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Earth Alive Clean vs. iA Financial
Performance |
| Timeline |
| Earth Alive Clean |
| iA Financial |
Earth Alive and IA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Earth Alive and IA Financial
The main advantage of trading using opposite Earth Alive and IA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Earth Alive position performs unexpectedly, IA 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 IA Financial will offset losses from the drop in IA Financial's long position.| Earth Alive vs. Orbit Garant Drilling | Earth Alive vs. NextSource Materials | Earth Alive vs. Electra Battery Materials | Earth Alive vs. SalesforceCom CDR |
| IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. Sun Life Financial | IA Financial vs. Laurentian Bank |
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 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.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |