Correlation Between Bio Rad and Intact Financial

Can any of the company-specific risk be diversified away by investing in both Bio Rad and Intact Financial 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 Bio Rad and Intact Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bio Rad Laboratories and Intact Financial, you can compare the effects of market volatilities on Bio Rad and Intact Financial 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 Bio Rad with a short position of Intact Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio Rad and Intact Financial.

Diversification Opportunities for Bio Rad and Intact Financial

-0.63

Correlation Coefficient

Bio Rad  Intact Financial

Excellent diversification

The 3 months correlation between Bio and Intact is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial has no effect on the direction of Bio Rad i.e., Bio Rad and Intact Financial go up and down completely randomly.

Pair Corralation between Bio Rad and Intact Financial

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 2.46 times more return on investment than Intact Financial. However, Bio Rad is 2.46 times more volatile than Intact Financial. It trades about 0.09 of its potential returns per unit of risk. Intact Financial is currently generating about -0.08 per unit of risk. If you would invest  24,867  in Bio Rad Laboratories on May 16, 2025 and sell it today you would earn a total of  3,849  from holding Bio Rad Laboratories or generate 15.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Bio Rad Laboratories  vs.  Intact Financial

Bio Rad Laboratories

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

Intact Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Intact Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Bio Rad and Intact Financial

The main advantage of trading using opposite Bio Rad and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad position performs unexpectedly, Intact Financial 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 Intact Financial will offset losses from the drop in Intact Financial's long position.

The idea behind Bio Rad Laboratories and Intact Financial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.