Correlation Between Intact Financ and Bitfarms
Can any of the company-specific risk be diversified away by investing in both Intact Financ and Bitfarms 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 Intact Financ and Bitfarms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financ 1 and Bitfarms, you can compare the effects of market volatilities on Intact Financ and Bitfarms 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 Intact Financ with a short position of Bitfarms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financ and Bitfarms.
Diversification Opportunities for Intact Financ and Bitfarms
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intact and Bitfarms is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financ 1 and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms and Intact Financ 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 Intact Financ 1 are associated (or correlated) with Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Intact Financ i.e., Intact Financ and Bitfarms go up and down completely randomly.
Pair Corralation between Intact Financ and Bitfarms
Assuming the 90 days trading horizon Intact Financ 1 is expected to under-perform the Bitfarms. But the preferred stock apears to be less risky and, when comparing its historical volatility, Intact Financ 1 is 17.41 times less risky than Bitfarms. The preferred stock trades about -0.04 of its potential returns per unit of risk. The Bitfarms is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Bitfarms on July 23, 2025 and sell it today you would earn a total of 528.00 from holding Bitfarms or generate 303.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financ 1 vs. Bitfarms
Performance |
| Timeline |
| Intact Financ 1 |
| Bitfarms |
Intact Financ and Bitfarms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financ and Bitfarms
The main advantage of trading using opposite Intact Financ and Bitfarms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financ position performs unexpectedly, Bitfarms 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 Bitfarms will offset losses from the drop in Bitfarms' long position.| Intact Financ vs. Brookfield Business Corp | Intact Financ vs. EQB Inc | Intact Financ vs. Bitfarms | Intact Financ vs. Sprott Inc |
| Bitfarms vs. Intact Financ 1 | Bitfarms vs. EQB Inc | Bitfarms vs. Brookfield Business Corp | Bitfarms vs. Hut 8 Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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