Correlation Between Intact Financial and Equitable
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Equitable 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 Equitable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Equitable Group, you can compare the effects of market volatilities on Intact Financial and Equitable 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 Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Equitable.
Diversification Opportunities for Intact Financial and Equitable
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intact and Equitable is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Equitable Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Group 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 are associated (or correlated) with Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Group has no effect on the direction of Intact Financial i.e., Intact Financial and Equitable go up and down completely randomly.
Pair Corralation between Intact Financial and Equitable
Assuming the 90 days trading horizon Intact Financial is expected to generate 0.58 times more return on investment than Equitable. However, Intact Financial is 1.73 times less risky than Equitable. It trades about 0.11 of its potential returns per unit of risk. Equitable Group is currently generating about 0.05 per unit of risk. If you would invest 20,570 in Intact Financial on November 8, 2024 and sell it today you would earn a total of 6,480 from holding Intact Financial or generate 31.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial vs. Equitable Group
Performance |
| Timeline |
| Intact Financial |
| Equitable Group |
Intact Financial and Equitable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Equitable
The main advantage of trading using opposite Intact Financial and Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Equitable 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 Equitable will offset losses from the drop in Equitable's long position.| Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
| Equitable vs. goeasy | Equitable vs. Canadian Western Bank | Equitable vs. TFI International | Equitable vs. Intact Financial |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |