Correlation Between IA Financial and Bird Construction
Can any of the company-specific risk be diversified away by investing in both IA Financial and Bird Construction 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 IA Financial and Bird Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iA Financial and Bird Construction, you can compare the effects of market volatilities on IA Financial and Bird Construction 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 IA Financial with a short position of Bird Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of IA Financial and Bird Construction.
Diversification Opportunities for IA Financial and Bird Construction
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between IAG and Bird is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding iA Financial and Bird Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bird Construction and IA Financial 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 iA Financial are associated (or correlated) with Bird Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bird Construction has no effect on the direction of IA Financial i.e., IA Financial and Bird Construction go up and down completely randomly.
Pair Corralation between IA Financial and Bird Construction
Assuming the 90 days trading horizon iA Financial is expected to generate 0.47 times more return on investment than Bird Construction. However, iA Financial is 2.14 times less risky than Bird Construction. It trades about 0.14 of its potential returns per unit of risk. Bird Construction is currently generating about -0.09 per unit of risk. If you would invest 16,036 in iA Financial on September 8, 2025 and sell it today you would earn a total of 565.00 from holding iA Financial or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iA Financial vs. Bird Construction
Performance |
| Timeline |
| iA Financial |
| Bird Construction |
IA Financial and Bird Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IA Financial and Bird Construction
The main advantage of trading using opposite IA Financial and Bird Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IA Financial position performs unexpectedly, Bird Construction 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 Bird Construction will offset losses from the drop in Bird Construction's long position.| IA Financial vs. Intact Financial | IA Financial vs. IGM Financial | IA Financial vs. TMX Group Limited | IA Financial vs. Power Financial Corp |
| Bird Construction vs. Transcontinental | Bird Construction vs. Westshore Terminals Investment | Bird Construction vs. Aecon Group | Bird Construction vs. Savaria |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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