Correlation Between IGM Financial and INTEL CDR
Can any of the company-specific risk be diversified away by investing in both IGM Financial and INTEL CDR 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 IGM Financial and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Financial and INTEL CDR, you can compare the effects of market volatilities on IGM Financial and INTEL CDR 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 IGM Financial with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and INTEL CDR.
Diversification Opportunities for IGM Financial and INTEL CDR
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IGM and INTEL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and IGM 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 IGM Financial are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of IGM Financial i.e., IGM Financial and INTEL CDR go up and down completely randomly.
Pair Corralation between IGM Financial and INTEL CDR
Assuming the 90 days trading horizon IGM Financial is expected to generate 0.32 times more return on investment than INTEL CDR. However, IGM Financial is 3.08 times less risky than INTEL CDR. It trades about 0.57 of its potential returns per unit of risk. INTEL CDR is currently generating about 0.12 per unit of risk. If you would invest 4,233 in IGM Financial on September 3, 2024 and sell it today you would earn a total of 498.00 from holding IGM Financial or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGM Financial vs. INTEL CDR
Performance |
| Timeline |
| IGM Financial |
| INTEL CDR |
IGM Financial and INTEL CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGM Financial and INTEL CDR
The main advantage of trading using opposite IGM Financial and INTEL CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial position performs unexpectedly, INTEL CDR 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 INTEL CDR will offset losses from the drop in INTEL CDR's long position.| IGM Financial vs. CI Financial Corp | IGM Financial vs. Great West Lifeco | IGM Financial vs. iA Financial | IGM Financial vs. Power |
| INTEL CDR vs. National Bank of | INTEL CDR vs. Fairfax Financial Holdings | INTEL CDR vs. IGM Financial | INTEL CDR vs. Royal Bank of |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |