Correlation Between Intermap Technologies and ROYAL CANADIAN
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and ROYAL CANADIAN 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 ROYAL CANADIAN 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 ROYAL CANADIAN MINT, you can compare the effects of market volatilities on Intermap Technologies and ROYAL CANADIAN 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 ROYAL CANADIAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and ROYAL CANADIAN.
Diversification Opportunities for Intermap Technologies and ROYAL CANADIAN
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intermap and ROYAL is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and ROYAL CANADIAN MINT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROYAL CANADIAN MINT 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 ROYAL CANADIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROYAL CANADIAN MINT has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and ROYAL CANADIAN go up and down completely randomly.
Pair Corralation between Intermap Technologies and ROYAL CANADIAN
Assuming the 90 days trading horizon Intermap Technologies is expected to generate 1.18 times less return on investment than ROYAL CANADIAN. In addition to that, Intermap Technologies is 2.18 times more volatile than ROYAL CANADIAN MINT. It trades about 0.09 of its total potential returns per unit of risk. ROYAL CANADIAN MINT is currently generating about 0.23 per unit of volatility. If you would invest 1,972 in ROYAL CANADIAN MINT on August 31, 2024 and sell it today you would earn a total of 737.00 from holding ROYAL CANADIAN MINT or generate 37.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 17.96% |
| Values | Daily Returns |
Intermap Technologies Corp vs. ROYAL CANADIAN MINT
Performance |
| Timeline |
| Intermap Technologies |
| ROYAL CANADIAN MINT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Intermap Technologies and ROYAL CANADIAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and ROYAL CANADIAN
The main advantage of trading using opposite Intermap Technologies and ROYAL CANADIAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, ROYAL CANADIAN 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 ROYAL CANADIAN will offset losses from the drop in ROYAL CANADIAN'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 |
| ROYAL CANADIAN vs. NeXGold Mining Corp | ROYAL CANADIAN vs. Rubicon Organics | ROYAL CANADIAN vs. Medical Facilities | ROYAL CANADIAN vs. Endeavour Silver Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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