Correlation Between IA Financial and Quebecor
Can any of the company-specific risk be diversified away by investing in both IA Financial and Quebecor 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 Quebecor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iA Financial and Quebecor, you can compare the effects of market volatilities on IA Financial and Quebecor 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 Quebecor. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Financial and Quebecor.
Diversification Opportunities for IA Financial and Quebecor
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IAG and Quebecor is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding iA Financial and Quebecor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quebecor 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 Quebecor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quebecor has no effect on the direction of IA Financial i.e., IA Financial and Quebecor go up and down completely randomly.
Pair Corralation between IA Financial and Quebecor
Assuming the 90 days trading horizon iA Financial is expected to generate 1.09 times more return on investment than Quebecor. However, IA Financial is 1.09 times more volatile than Quebecor. It trades about 0.09 of its potential returns per unit of risk. Quebecor is currently generating about 0.04 per unit of risk. If you would invest 7,067 in iA Financial on August 28, 2024 and sell it today you would earn a total of 6,161 from holding iA Financial or generate 87.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iA Financial vs. Quebecor
Performance |
| Timeline |
| iA Financial |
| Quebecor |
IA Financial and Quebecor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Financial and Quebecor
The main advantage of trading using opposite IA Financial and Quebecor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Financial position performs unexpectedly, Quebecor 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 Quebecor will offset losses from the drop in Quebecor'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 |
| Quebecor vs. Cogeco Communications | Quebecor vs. Transcontinental | Quebecor vs. iA Financial | Quebecor vs. Saputo 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |