Correlation Between IGM Financial and Cathedra Bitcoin
Can any of the company-specific risk be diversified away by investing in both IGM Financial and Cathedra Bitcoin 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 IGM Financial and Cathedra Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IGM Financial and Cathedra Bitcoin, you can compare the effects of market volatilities on IGM Financial and Cathedra Bitcoin 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 IGM Financial with a short position of Cathedra Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IGM Financial and Cathedra Bitcoin.
Diversification Opportunities for IGM Financial and Cathedra Bitcoin
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IGM and Cathedra is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding IGM Financial and Cathedra Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathedra Bitcoin and IGM 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 IGM Financial are associated (or correlated) with Cathedra Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathedra Bitcoin has no effect on the direction of IGM Financial i.e., IGM Financial and Cathedra Bitcoin go up and down completely randomly.
Pair Corralation between IGM Financial and Cathedra Bitcoin
Assuming the 90 days trading horizon IGM Financial is expected to generate 0.16 times more return on investment than Cathedra Bitcoin. However, IGM Financial is 6.06 times less risky than Cathedra Bitcoin. It trades about 0.26 of its potential returns per unit of risk. Cathedra Bitcoin is currently generating about -0.04 per unit of risk. If you would invest 5,085 in IGM Financial on October 6, 2025 and sell it today you would earn a total of 1,107 from holding IGM Financial or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IGM Financial vs. Cathedra Bitcoin
Performance |
| Timeline |
| IGM Financial |
| Cathedra Bitcoin |
IGM Financial and Cathedra Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IGM Financial and Cathedra Bitcoin
The main advantage of trading using opposite IGM Financial and Cathedra Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IGM Financial position performs unexpectedly, Cathedra Bitcoin 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 Cathedra Bitcoin will offset losses from the drop in Cathedra Bitcoin's long position.| IGM Financial vs. Onex Corp | IGM Financial vs. iA Financial | IGM Financial vs. TMX Group Limited | IGM Financial vs. Guardian Capital Group |
| Cathedra Bitcoin vs. Matador Technologies | Cathedra Bitcoin vs. BIGG Digital Assets | Cathedra Bitcoin vs. Bitcoin Well | Cathedra Bitcoin vs. Lions Bay Capital |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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