Correlation Between Brompton Energy and Intermap Technologies
Can any of the company-specific risk be diversified away by investing in both Brompton Energy and Intermap Technologies 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 Brompton Energy and Intermap Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brompton Energy Split and Intermap Technologies Corp, you can compare the effects of market volatilities on Brompton Energy and Intermap Technologies 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 Brompton Energy with a short position of Intermap Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brompton Energy and Intermap Technologies.
Diversification Opportunities for Brompton Energy and Intermap Technologies
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brompton and Intermap is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Brompton Energy Split and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and Brompton Energy 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 Brompton Energy Split are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of Brompton Energy i.e., Brompton Energy and Intermap Technologies go up and down completely randomly.
Pair Corralation between Brompton Energy and Intermap Technologies
Assuming the 90 days trading horizon Brompton Energy Split is expected to under-perform the Intermap Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Brompton Energy Split is 1.91 times less risky than Intermap Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Intermap Technologies Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 249.00 in Intermap Technologies Corp on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Intermap Technologies Corp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brompton Energy Split vs. Intermap Technologies Corp
Performance |
| Timeline |
| Brompton Energy Split |
| Intermap Technologies |
Brompton Energy and Intermap Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brompton Energy and Intermap Technologies
The main advantage of trading using opposite Brompton Energy and Intermap Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brompton Energy position performs unexpectedly, Intermap Technologies 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 Intermap Technologies will offset losses from the drop in Intermap Technologies' long position.| Brompton Energy vs. Air Canada | Brompton Energy vs. XXIX Metal Corp | Brompton Energy vs. Plaza Retail REIT | Brompton Energy vs. Primaris Retail RE |
| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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