Correlation Between Intermap Technologies and Canadian Utilities
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and Canadian Utilities 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 Canadian Utilities 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 Canadian Utilities Ltd, you can compare the effects of market volatilities on Intermap Technologies and Canadian Utilities 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 Canadian Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Canadian Utilities.
Diversification Opportunities for Intermap Technologies and Canadian Utilities
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermap and Canadian is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Canadian Utilities Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Utilities 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 Canadian Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Utilities has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Canadian Utilities go up and down completely randomly.
Pair Corralation between Intermap Technologies and Canadian Utilities
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 7.32 times more return on investment than Canadian Utilities. However, Intermap Technologies is 7.32 times more volatile than Canadian Utilities Ltd. It trades about 0.24 of its potential returns per unit of risk. Canadian Utilities Ltd is currently generating about -0.06 per unit of risk. If you would invest 85.00 in Intermap Technologies Corp on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Intermap Technologies Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. Canadian Utilities Ltd
Performance |
| Timeline |
| Intermap Technologies |
| Canadian Utilities |
Intermap Technologies and Canadian Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and Canadian Utilities
The main advantage of trading using opposite Intermap Technologies and Canadian Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, Canadian Utilities 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 Canadian Utilities will offset losses from the drop in Canadian Utilities' long position.| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows Inc |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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