Correlation Between Winshear Gold and Intact Financial
Can any of the company-specific risk be diversified away by investing in both Winshear Gold 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 Winshear Gold and Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winshear Gold Corp and Intact Financial Corp, you can compare the effects of market volatilities on Winshear Gold 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 Winshear Gold with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winshear Gold and Intact Financial.
Diversification Opportunities for Winshear Gold and Intact Financial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Winshear and Intact is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Winshear Gold Corp 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 Winshear Gold 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 Winshear Gold Corp 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 Winshear Gold i.e., Winshear Gold and Intact Financial go up and down completely randomly.
Pair Corralation between Winshear Gold and Intact Financial
Assuming the 90 days trading horizon Winshear Gold Corp is expected to generate 13.42 times more return on investment than Intact Financial. However, Winshear Gold is 13.42 times more volatile than Intact Financial Corp. It trades about 0.1 of its potential returns per unit of risk. Intact Financial Corp is currently generating about 0.1 per unit of risk. If you would invest 12.00 in Winshear Gold Corp on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Winshear Gold Corp or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winshear Gold Corp vs. Intact Financial Corp
Performance |
| Timeline |
| Winshear Gold Corp |
| Intact Financial Corp |
Winshear Gold and Intact Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winshear Gold and Intact Financial
The main advantage of trading using opposite Winshear Gold and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winshear Gold 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.| Winshear Gold vs. Brookfield Office Properties | Winshear Gold vs. Everyday People Financial | Winshear Gold vs. Pembina Pipeline Corp | Winshear Gold vs. Orbit Garant Drilling |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |