Correlation Between Intact Financial and Solid Impact
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Solid Impact 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 Solid Impact 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 Solid Impact Investments, you can compare the effects of market volatilities on Intact Financial and Solid Impact 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 Solid Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Solid Impact.
Diversification Opportunities for Intact Financial and Solid Impact
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intact and Solid is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Corp and Solid Impact Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Impact Investments 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 Solid Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Impact Investments has no effect on the direction of Intact Financial i.e., Intact Financial and Solid Impact go up and down completely randomly.
Pair Corralation between Intact Financial and Solid Impact
Assuming the 90 days trading horizon Intact Financial Corp is expected to generate 0.28 times more return on investment than Solid Impact. However, Intact Financial Corp is 3.61 times less risky than Solid Impact. It trades about 0.05 of its potential returns per unit of risk. Solid Impact Investments is currently generating about -0.09 per unit of risk. If you would invest 2,303 in Intact Financial Corp on September 2, 2024 and sell it today you would earn a total of 135.00 from holding Intact Financial Corp or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Intact Financial Corp vs. Solid Impact Investments
Performance |
| Timeline |
| Intact Financial Corp |
| Solid Impact Investments |
Intact Financial and Solid Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Solid Impact
The main advantage of trading using opposite Intact Financial and Solid Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Solid Impact 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 Solid Impact will offset losses from the drop in Solid Impact's long position.| Intact Financial vs. Fairfax Financial Holdings | Intact Financial vs. iShares Canadian HYBrid | Intact Financial vs. Brompton European Dividend | Intact Financial vs. Solar Alliance Energy |
| Solid Impact vs. NovaGold Resources | Solid Impact vs. HPQ Silicon Resources | Solid Impact vs. Eastwood Bio Medical Canada | Solid Impact vs. Diamond Fields Resources |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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