Correlation Between Intact Financial and Cassiar Gold
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Cassiar 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 Cassiar 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 Cassiar Gold Corp, you can compare the effects of market volatilities on Intact Financial and Cassiar 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 Cassiar Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Cassiar Gold.
Diversification Opportunities for Intact Financial and Cassiar Gold
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intact and Cassiar is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Cassiar Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cassiar Gold Corp 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 Cassiar Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cassiar Gold Corp has no effect on the direction of Intact Financial i.e., Intact Financial and Cassiar Gold go up and down completely randomly.
Pair Corralation between Intact Financial and Cassiar Gold
Assuming the 90 days trading horizon Intact Financial Corp is expected to generate 0.23 times more return on investment than Cassiar Gold. However, Intact Financial Corp is 4.31 times less risky than Cassiar Gold. It trades about 0.08 of its potential returns per unit of risk. Cassiar Gold Corp is currently generating about -0.03 per unit of risk. If you would invest 1,716 in Intact Financial Corp on September 3, 2024 and sell it today you would earn a total of 722.00 from holding Intact Financial Corp or generate 42.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial Corp vs. Cassiar Gold Corp
Performance |
| Timeline |
| Intact Financial Corp |
| Cassiar Gold Corp |
Intact Financial and Cassiar Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Cassiar Gold
The main advantage of trading using opposite Intact Financial and Cassiar Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Cassiar 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 Cassiar Gold will offset losses from the drop in Cassiar 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 |
| Cassiar Gold vs. Rocky Mountain Liquor | Cassiar Gold vs. Intact Financial Corp | Cassiar Gold vs. Datable Technology Corp | Cassiar Gold vs. CI Financial 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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