Correlation Between Intact Financial and Mako Mining
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Mako Mining 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 Mako Mining 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 Mako Mining Corp, you can compare the effects of market volatilities on Intact Financial and Mako Mining 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 Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Mako Mining.
Diversification Opportunities for Intact Financial and Mako Mining
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intact and Mako is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining 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 Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of Intact Financial i.e., Intact Financial and Mako Mining go up and down completely randomly.
Pair Corralation between Intact Financial and Mako Mining
Assuming the 90 days trading horizon Intact Financial Corp is expected to generate 0.28 times more return on investment than Mako Mining. However, Intact Financial Corp is 3.58 times less risky than Mako Mining. It trades about 0.1 of its potential returns per unit of risk. Mako Mining Corp is currently generating about 0.02 per unit of risk. 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 | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial Corp vs. Mako Mining Corp
Performance |
| Timeline |
| Intact Financial Corp |
| Mako Mining Corp |
Intact Financial and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Mako Mining
The main advantage of trading using opposite Intact Financial and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining'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 |
| Mako Mining vs. Arizona Sonoran Copper | Mako Mining vs. Marimaca Copper Corp | Mako Mining vs. World Copper | Mako Mining vs. QC Copper and |
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.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |