Correlation Between Intermap Technologies and BCE
Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and BCE 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 BCE 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 BCE Inc, you can compare the effects of market volatilities on Intermap Technologies and BCE 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 BCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and BCE.
Diversification Opportunities for Intermap Technologies and BCE
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intermap and BCE is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc 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 BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and BCE go up and down completely randomly.
Pair Corralation between Intermap Technologies and BCE
Assuming the 90 days horizon Intermap Technologies Corp is expected to generate 7.88 times more return on investment than BCE. However, Intermap Technologies is 7.88 times more volatile than BCE Inc. It trades about 0.05 of its potential returns per unit of risk. BCE Inc is currently generating about 0.03 per unit of risk. If you would invest 63.00 in Intermap Technologies Corp on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Intermap Technologies Corp or generate 103.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intermap Technologies Corp vs. BCE Inc
Performance |
| Timeline |
| Intermap Technologies |
| BCE Inc |
Intermap Technologies and BCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intermap Technologies and BCE
The main advantage of trading using opposite Intermap Technologies and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intermap Technologies position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.| Intermap Technologies vs. Eline Entertainment Group | Intermap Technologies vs. Green Leaf Innovations | Intermap Technologies vs. Plandai Biotech | Intermap Technologies vs. All American Gld |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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