Correlation Between Intact Financial and Earth Alive
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Earth Alive 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 Earth Alive 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 Earth Alive Clean, you can compare the effects of market volatilities on Intact Financial and Earth Alive 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 Earth Alive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Earth Alive.
Diversification Opportunities for Intact Financial and Earth Alive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intact and Earth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Earth Alive Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Earth Alive Clean 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 Earth Alive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Earth Alive Clean has no effect on the direction of Intact Financial i.e., Intact Financial and Earth Alive go up and down completely randomly.
Pair Corralation between Intact Financial and Earth Alive
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 |
Intact Financial Corp vs. Earth Alive Clean
Performance |
| Timeline |
| Intact Financial Corp |
| Earth Alive Clean |
Intact Financial and Earth Alive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Earth Alive
The main advantage of trading using opposite Intact Financial and Earth Alive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Earth Alive 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 Earth Alive will offset losses from the drop in Earth Alive's long position.| Intact Financial vs. Brookfield Infrastructure Partners | Intact Financial vs. Brookfield Infrastructure Partners | Intact Financial vs. iShares Canadian HYBrid | Intact Financial vs. Solar Alliance Energy |
| Earth Alive vs. First Majestic Silver | Earth Alive vs. Ivanhoe Energy | Earth Alive vs. Orezone Gold Corp | Earth Alive vs. Faraday Copper Corp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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