Correlation Between Intermap Technologies and Greenfire Resources
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and Greenfire Resources 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 Greenfire Resources 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 Greenfire Resources, you can compare the effects of market volatilities on Intermap Technologies and Greenfire Resources 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 Greenfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Greenfire Resources.
Diversification Opportunities for Intermap Technologies and Greenfire Resources
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intermap and Greenfire is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Greenfire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenfire Resources 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 Greenfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenfire Resources has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Greenfire Resources go up and down completely randomly.
Pair Corralation between Intermap Technologies and Greenfire Resources
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 3.37 times more return on investment than Greenfire Resources. However, Intermap Technologies is 3.37 times more volatile than Greenfire Resources. It trades about 0.11 of its potential returns per unit of risk. Greenfire Resources is currently generating about -0.02 per unit of risk. If you would invest 249.00 in Intermap Technologies Corp on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Intermap Technologies Corp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. Greenfire Resources
Performance |
| Timeline |
| Intermap Technologies |
| Greenfire Resources |
Intermap Technologies and Greenfire Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and Greenfire Resources
The main advantage of trading using opposite Intermap Technologies and Greenfire Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, Greenfire Resources 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 Greenfire Resources will offset losses from the drop in Greenfire Resources' long position.| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. D Box Technologies | Intermap Technologies vs. Tucows Inc |
| Greenfire Resources vs. Osisko Metals | Greenfire Resources vs. Ramp Metals | Greenfire Resources vs. Toronto Dominion Bank | Greenfire Resources vs. Pollard Banknote Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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