Correlation Between Intermap Technologies and Brookfield Renewable
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and Brookfield Renewable 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 Intermap Technologies and Brookfield Renewable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intermap Technologies Corp and Brookfield Renewable Energy, you can compare the effects of market volatilities on Intermap Technologies and Brookfield Renewable 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 Intermap Technologies with a short position of Brookfield Renewable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Brookfield Renewable.
Diversification Opportunities for Intermap Technologies and Brookfield Renewable
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intermap and Brookfield is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Brookfield Renewable Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Renewable and Intermap Technologies 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 Intermap Technologies Corp are associated (or correlated) with Brookfield Renewable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Renewable has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Brookfield Renewable go up and down completely randomly.
Pair Corralation between Intermap Technologies and Brookfield Renewable
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 12.6 times more return on investment than Brookfield Renewable. However, Intermap Technologies is 12.6 times more volatile than Brookfield Renewable Energy. It trades about 0.34 of its potential returns per unit of risk. Brookfield Renewable Energy is currently generating about 0.25 per unit of risk. If you would invest 120.00 in Intermap Technologies Corp on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Intermap Technologies Corp or generate 61.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. Brookfield Renewable Energy
Performance |
| Timeline |
| Intermap Technologies |
| Brookfield Renewable |
Intermap Technologies and Brookfield Renewable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and Brookfield Renewable
The main advantage of trading using opposite Intermap Technologies and Brookfield Renewable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, Brookfield Renewable 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 Brookfield Renewable will offset losses from the drop in Brookfield Renewable's long position.| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows Inc |
| Brookfield Renewable vs. Microsoft Corp CDR | Brookfield Renewable vs. Apple Inc CDR | Brookfield Renewable vs. Alphabet Inc CDR | Brookfield Renewable vs. Amazon CDR |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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