Correlation Between Intact Financial and Infinico Metals
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Infinico Metals 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 Infinico Metals 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 Infinico Metals Corp, you can compare the effects of market volatilities on Intact Financial and Infinico Metals 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 Infinico Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Infinico Metals.
Diversification Opportunities for Intact Financial and Infinico Metals
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intact and Infinico is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Infinico Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinico Metals 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 Infinico Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinico Metals Corp has no effect on the direction of Intact Financial i.e., Intact Financial and Infinico Metals go up and down completely randomly.
Pair Corralation between Intact Financial and Infinico Metals
Assuming the 90 days trading horizon Intact Financial is expected to generate 29.59 times less return on investment than Infinico Metals. But when comparing it to its historical volatility, Intact Financial Corp is 66.82 times less risky than Infinico Metals. It trades about 0.24 of its potential returns per unit of risk. Infinico Metals Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1.50 in Infinico Metals Corp on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Infinico Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial Corp vs. Infinico Metals Corp
Performance |
| Timeline |
| Intact Financial Corp |
| Infinico Metals Corp |
Intact Financial and Infinico Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Infinico Metals
The main advantage of trading using opposite Intact Financial and Infinico Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Infinico Metals 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 Infinico Metals will offset losses from the drop in Infinico Metals' 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 |
| Infinico Metals vs. First Majestic Silver | Infinico Metals vs. Ivanhoe Energy | Infinico Metals vs. Flinders Resources Limited | Infinico Metals vs. Orezone Gold 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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