Correlation Between Earth Alive and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Earth Alive 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 Earth Alive and Intact 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 Intact Financial Corp, you can compare the effects of market volatilities on Earth Alive 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 Earth Alive with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Earth Alive and Intact Financial.
Diversification Opportunities for Earth Alive and Intact Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Earth and Intact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Earth Alive Clean 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 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 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 Earth Alive i.e., Earth Alive and Intact Financial go up and down completely randomly.
Pair Corralation between Earth Alive and Intact Financial
If you would invest 2,362 in Intact Financial Corp on September 12, 2024 and sell it today you would earn a total of 88.00 from holding Intact Financial Corp or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Earth Alive Clean vs. Intact Financial Corp
Performance |
| Timeline |
| Earth Alive Clean |
| Intact Financial Corp |
Earth Alive and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Earth Alive and Intact Financial
The main advantage of trading using opposite Earth Alive and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Earth Alive 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.| Earth Alive vs. First Majestic Silver | Earth Alive vs. Ivanhoe Energy | Earth Alive vs. Orezone Gold Corp | Earth Alive vs. Faraday Copper Corp |
| Intact Financial vs. Brookfield Infrastructure Partners | Intact Financial vs. Brookfield Infrastructure Partners | Intact Financial vs. iShares Canadian HYBrid | Intact Financial vs. Solar Alliance Energy |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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