Correlation Between Intermap Technologies and NorthWest Healthcare
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and NorthWest Healthcare 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 NorthWest Healthcare 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 NorthWest Healthcare Properties, you can compare the effects of market volatilities on Intermap Technologies and NorthWest Healthcare 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 NorthWest Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and NorthWest Healthcare.
Diversification Opportunities for Intermap Technologies and NorthWest Healthcare
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intermap and NorthWest is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and NorthWest Healthcare Propertie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorthWest Healthcare 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 NorthWest Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorthWest Healthcare has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and NorthWest Healthcare go up and down completely randomly.
Pair Corralation between Intermap Technologies and NorthWest Healthcare
Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 2.28 times more return on investment than NorthWest Healthcare. However, Intermap Technologies is 2.28 times more volatile than NorthWest Healthcare Properties. It trades about 0.07 of its potential returns per unit of risk. NorthWest Healthcare Properties is currently generating about -0.05 per unit of risk. If you would invest 83.00 in Intermap Technologies Corp on October 25, 2024 and sell it today you would earn a total of 170.00 from holding Intermap Technologies Corp or generate 204.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. NorthWest Healthcare Propertie
Performance |
| Timeline |
| Intermap Technologies |
| NorthWest Healthcare |
Intermap Technologies and NorthWest Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and NorthWest Healthcare
The main advantage of trading using opposite Intermap Technologies and NorthWest Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, NorthWest Healthcare 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 NorthWest Healthcare will offset losses from the drop in NorthWest Healthcare's long position.| Intermap Technologies vs. Firan Technology Group | Intermap Technologies vs. Vecima Networks | Intermap Technologies vs. Tucows Inc |
| NorthWest Healthcare vs. SmartCentres Real Estate | NorthWest Healthcare vs. Dream Industrial Real | NorthWest Healthcare vs. RioCan Real Estate | NorthWest Healthcare vs. Algonquin Power Utilities |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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