Correlation Between IA Financial and Nano One
Can any of the company-specific risk be diversified away by investing in both IA Financial and Nano One 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 IA Financial and Nano One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iA Financial and Nano One Materials, you can compare the effects of market volatilities on IA Financial and Nano One 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 IA Financial with a short position of Nano One. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Financial and Nano One.
Diversification Opportunities for IA Financial and Nano One
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IAG and Nano is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding iA Financial and Nano One Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano One Materials and IA Financial 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 iA Financial are associated (or correlated) with Nano One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano One Materials has no effect on the direction of IA Financial i.e., IA Financial and Nano One go up and down completely randomly.
Pair Corralation between IA Financial and Nano One
Assuming the 90 days trading horizon iA Financial is expected to generate 0.14 times more return on investment than Nano One. However, iA Financial is 7.24 times less risky than Nano One. It trades about -0.29 of its potential returns per unit of risk. Nano One Materials is currently generating about -0.07 per unit of risk. If you would invest 13,606 in iA Financial on October 12, 2024 and sell it today you would lose (559.00) from holding iA Financial or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iA Financial vs. Nano One Materials
Performance |
| Timeline |
| iA Financial |
| Nano One Materials |
IA Financial and Nano One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Financial and Nano One
The main advantage of trading using opposite IA Financial and Nano One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Financial position performs unexpectedly, Nano One 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 Nano One will offset losses from the drop in Nano One's long position.| IA Financial vs. Great West Lifeco | IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. Sun Life Financial |
| Nano One vs. iA Financial | Nano One vs. Constellation Software | Nano One vs. Fairfax Financial Holdings | Nano One vs. Bank of Nova |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |