Correlation Between Intact Financial and Ritchie Bros
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Ritchie Bros 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 Ritchie Bros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Ritchie Bros Auctioneers, you can compare the effects of market volatilities on Intact Financial and Ritchie Bros 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 Ritchie Bros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Ritchie Bros.
Diversification Opportunities for Intact Financial and Ritchie Bros
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intact and Ritchie is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Ritchie Bros Auctioneers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ritchie Bros Auctioneers 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 are associated (or correlated) with Ritchie Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ritchie Bros Auctioneers has no effect on the direction of Intact Financial i.e., Intact Financial and Ritchie Bros go up and down completely randomly.
Pair Corralation between Intact Financial and Ritchie Bros
Assuming the 90 days trading horizon Intact Financial is expected to under-perform the Ritchie Bros. But the stock apears to be less risky and, when comparing its historical volatility, Intact Financial is 1.03 times less risky than Ritchie Bros. The stock trades about -0.18 of its potential returns per unit of risk. The Ritchie Bros Auctioneers is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 14,739 in Ritchie Bros Auctioneers on July 20, 2025 and sell it today you would lose (869.00) from holding Ritchie Bros Auctioneers or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial vs. Ritchie Bros Auctioneers
Performance |
| Timeline |
| Intact Financial |
| Ritchie Bros Auctioneers |
Intact Financial and Ritchie Bros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Ritchie Bros
The main advantage of trading using opposite Intact Financial and Ritchie Bros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Ritchie Bros 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 Ritchie Bros will offset losses from the drop in Ritchie Bros' long position.| Intact Financial vs. Fairfax Financial Holdings | Intact Financial vs. Sun Life Financial | Intact Financial vs. Manulife Financial Corp | Intact Financial vs. Great West Lifeco |
| Ritchie Bros vs. WSP Global | Ritchie Bros vs. Bombardier | Ritchie Bros vs. Bombardier | Ritchie Bros vs. Stantec |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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