Correlation Between Intact Financial and AuQ Gold
Can any of the company-specific risk be diversified away by investing in both Intact Financial and AuQ Gold 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 Intact Financial and AuQ Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial Corp and AuQ Gold Mining, you can compare the effects of market volatilities on Intact Financial and AuQ Gold 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 Intact Financial with a short position of AuQ Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and AuQ Gold.
Diversification Opportunities for Intact Financial and AuQ Gold
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intact and AuQ is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and AuQ Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AuQ Gold Mining and Intact 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 Intact Financial Corp are associated (or correlated) with AuQ Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AuQ Gold Mining has no effect on the direction of Intact Financial i.e., Intact Financial and AuQ Gold go up and down completely randomly.
Pair Corralation between Intact Financial and AuQ Gold
Assuming the 90 days trading horizon Intact Financial is expected to generate 3.06 times less return on investment than AuQ Gold. But when comparing it to its historical volatility, Intact Financial Corp is 8.42 times less risky than AuQ Gold. It trades about 0.09 of its potential returns per unit of risk. AuQ Gold Mining is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 25.00 in AuQ Gold Mining on September 12, 2024 and sell it today you would lose (6.00) from holding AuQ Gold Mining or give up 24.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial Corp vs. AuQ Gold Mining
Performance |
| Timeline |
| Intact Financial Corp |
| AuQ Gold Mining |
Intact Financial and AuQ Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and AuQ Gold
The main advantage of trading using opposite Intact Financial and AuQ Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, AuQ Gold 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 AuQ Gold will offset losses from the drop in AuQ Gold's long position.| Intact Financial vs. Intact Financial Corp | Intact Financial vs. National Bank of | Intact Financial vs. Fairfax Financial Holdings | Intact Financial vs. Fairfax Financial Holdings |
| AuQ Gold vs. Intact Financial Corp | AuQ Gold vs. Costco Wholesale Corp | AuQ Gold vs. Algonquin Power Utilities | AuQ Gold vs. Plaza Retail REIT |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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