Correlation Between Intact Financial and Libero Copper
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Libero Copper 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 Libero Copper 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 Libero Copper Corp, you can compare the effects of market volatilities on Intact Financial and Libero Copper 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 Libero Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Libero Copper.
Diversification Opportunities for Intact Financial and Libero Copper
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intact and Libero is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Libero Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libero Copper 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 Libero Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libero Copper Corp has no effect on the direction of Intact Financial i.e., Intact Financial and Libero Copper go up and down completely randomly.
Pair Corralation between Intact Financial and Libero Copper
Assuming the 90 days trading horizon Intact Financial Corp is expected to generate 0.09 times more return on investment than Libero Copper. However, Intact Financial Corp is 11.22 times less risky than Libero Copper. It trades about 0.15 of its potential returns per unit of risk. Libero Copper Corp is currently generating about -0.01 per unit of risk. If you would invest 2,383 in Intact Financial Corp on October 22, 2024 and sell it today you would earn a total of 29.00 from holding Intact Financial Corp or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Intact Financial Corp vs. Libero Copper Corp
Performance |
| Timeline |
| Intact Financial Corp |
| Libero Copper Corp |
Intact Financial and Libero Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Libero Copper
The main advantage of trading using opposite Intact Financial and Libero Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Libero Copper 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 Libero Copper will offset losses from the drop in Libero Copper'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 |
| Libero Copper vs. Rogers Communications | Libero Copper vs. Reliq Health Technologies | Libero Copper vs. UnitedHealth Group CDR | Libero Copper vs. CVS HEALTH CDR |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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