Correlation Between Intact Financial and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Cohen Steers 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 Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Cohen Steers Infrastructure, you can compare the effects of market volatilities on Intact Financial and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Cohen Steers.
Diversification Opportunities for Intact Financial and Cohen Steers
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Intact and Cohen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Cohen Steers Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Infrast 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Infrast has no effect on the direction of Intact Financial i.e., Intact Financial and Cohen Steers go up and down completely randomly.
Pair Corralation between Intact Financial and Cohen Steers
Assuming the 90 days trading horizon Intact Financial is expected to generate 0.72 times more return on investment than Cohen Steers. However, Intact Financial is 1.38 times less risky than Cohen Steers. It trades about -0.04 of its potential returns per unit of risk. Cohen Steers Infrastructure is currently generating about -0.25 per unit of risk. If you would invest 22,318 in Intact Financial on January 20, 2024 and sell it today you would lose (123.00) from holding Intact Financial or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intact Financial vs. Cohen Steers Infrastructure
Performance |
| Timeline |
| Intact Financial |
| Cohen Steers Infrast |
Intact Financial and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Cohen Steers
The main advantage of trading using opposite Intact Financial and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Intact Financial vs. Must Capital | Intact Financial vs. DelphX Capital Markets | Intact Financial vs. Citadel Income | Intact Financial vs. Canadian Critical Minerals |
| Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard 500 Index | Cohen Steers vs. Vanguard Total Stock | Cohen Steers vs. Vanguard Total Stock |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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