Correlation Between Intact Financial and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Algonquin Power 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 Financial and Algonquin Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial Ser and Algonquin Power Utilities, you can compare the effects of market volatilities on Intact Financial and Algonquin Power 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 Financial with a short position of Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Algonquin Power.
Diversification Opportunities for Intact Financial and Algonquin Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intact and Algonquin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial Ser and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities and Intact 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 Intact Financial Ser are associated (or correlated) with Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Intact Financial i.e., Intact Financial and Algonquin Power go up and down completely randomly.
Pair Corralation between Intact Financial and Algonquin Power
If you would invest 2,492 in Algonquin Power Utilities on July 20, 2025 and sell it today you would earn a total of 43.00 from holding Algonquin Power Utilities or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Intact Financial Ser vs. Algonquin Power Utilities
Performance |
| Timeline |
| Intact Financial Ser |
Risk-Adjusted Performance
Good
Weak | Strong |
| Algonquin Power Utilities |
Intact Financial and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Algonquin Power
The main advantage of trading using opposite Intact Financial and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.| Intact Financial vs. Wilmington Capital Management | Intact Financial vs. Canadian General Investments | Intact Financial vs. Diversified Royalty Corp | Intact Financial vs. Element Fleet Management |
| Algonquin Power vs. GoldQuest Mining Corp | Algonquin Power vs. Endeavour Silver Corp | Algonquin Power vs. Capstone Mining Corp | Algonquin Power vs. Marimaca Copper Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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