Correlation Between Intact Financ and EQB
Can any of the company-specific risk be diversified away by investing in both Intact Financ and EQB 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 EQB 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 EQB Inc, you can compare the effects of market volatilities on Intact Financ and EQB 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 EQB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financ and EQB.
Diversification Opportunities for Intact Financ and EQB
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intact and EQB is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financ 1 and EQB Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQB Inc 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 EQB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQB Inc has no effect on the direction of Intact Financ i.e., Intact Financ and EQB go up and down completely randomly.
Pair Corralation between Intact Financ and EQB
Assuming the 90 days trading horizon Intact Financ 1 is expected to generate 0.29 times more return on investment than EQB. However, Intact Financ 1 is 3.49 times less risky than EQB. It trades about 0.01 of its potential returns per unit of risk. EQB Inc is currently generating about -0.17 per unit of risk. If you would invest 2,178 in Intact Financ 1 on July 27, 2025 and sell it today you would earn a total of 4.00 from holding Intact Financ 1 or generate 0.18% 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. EQB Inc
Performance |
| Timeline |
| Intact Financ 1 |
| EQB Inc |
Intact Financ and EQB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financ and EQB
The main advantage of trading using opposite Intact Financ and EQB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financ position performs unexpectedly, EQB 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 EQB will offset losses from the drop in EQB's long position.| Intact Financ vs. Brookfield Business Corp | Intact Financ vs. EQB Inc | Intact Financ vs. Bitfarms | Intact Financ vs. Sprott Inc |
| EQB vs. First National Financial | EQB vs. Brookfield Business Corp | EQB vs. Intact Financ 1 | EQB vs. goeasy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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