Correlation Between Intact Financial and Goeasy
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Goeasy 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 Goeasy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and goeasy, you can compare the effects of market volatilities on Intact Financial and Goeasy 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 Goeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Goeasy.
Diversification Opportunities for Intact Financial and Goeasy
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intact and Goeasy is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and goeasy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on goeasy 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 Goeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of goeasy has no effect on the direction of Intact Financial i.e., Intact Financial and Goeasy go up and down completely randomly.
Pair Corralation between Intact Financial and Goeasy
Assuming the 90 days trading horizon Intact Financial is expected to generate 0.43 times more return on investment than Goeasy. However, Intact Financial is 2.32 times less risky than Goeasy. It trades about 0.26 of its potential returns per unit of risk. goeasy is currently generating about -0.03 per unit of risk. If you would invest 25,822 in Intact Financial on November 8, 2024 and sell it today you would earn a total of 1,683 from holding Intact Financial or generate 6.52% 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. goeasy
Performance |
| Timeline |
| Intact Financial |
| goeasy |
Intact Financial and Goeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Goeasy
The main advantage of trading using opposite Intact Financial and Goeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Goeasy 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 Goeasy will offset losses from the drop in Goeasy's long position.| Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
| Goeasy vs. National Bank of | Goeasy vs. Financial 15 Split | Goeasy vs. Mako Mining Corp | Goeasy vs. Magna Mining |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |