Correlation Between Slate Grocery and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and Intact Financial 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 Slate Grocery and Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and Intact Financial Corp, you can compare the effects of market volatilities on Slate Grocery and Intact Financial 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 Slate Grocery with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and Intact Financial.
Diversification Opportunities for Slate Grocery and Intact Financial
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Slate and Intact is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and Intact Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial Corp and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial Corp has no effect on the direction of Slate Grocery i.e., Slate Grocery and Intact Financial go up and down completely randomly.
Pair Corralation between Slate Grocery and Intact Financial
Assuming the 90 days trading horizon Slate Grocery REIT is expected to generate 2.89 times more return on investment than Intact Financial. However, Slate Grocery is 2.89 times more volatile than Intact Financial Corp. It trades about 0.24 of its potential returns per unit of risk. Intact Financial Corp is currently generating about 0.13 per unit of risk. If you would invest 978.00 in Slate Grocery REIT on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Slate Grocery REIT or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. Intact Financial Corp
Performance |
| Timeline |
| Slate Grocery REIT |
| Intact Financial Corp |
Slate Grocery and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and Intact Financial
The main advantage of trading using opposite Slate Grocery and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, Intact Financial 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 Intact Financial will offset losses from the drop in Intact Financial's long position.| Slate Grocery vs. Algonquin Power Utilities | Slate Grocery vs. Calian Technologies | Slate Grocery vs. Wishpond Technologies | Slate Grocery vs. National Bank of |
| Intact Financial vs. Intact Financial Corp | Intact Financial vs. National Bank of | Intact Financial vs. Fairfax Financial Holdings | Intact Financial vs. Fairfax Financial Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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