Correlation Between BlackRock ESG and Intact Financial

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

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

Diversification Opportunities for BlackRock ESG and Intact Financial

0.07

Correlation Coefficient

BlackRock ESG  Intact Financial

Significant diversification

The 3 months correlation between BlackRock and Intact is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding BlackRock ESG Capital and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial and BlackRock ESG 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 BlackRock ESG Capital 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 BlackRock ESG i.e., BlackRock ESG and Intact Financial go up and down completely randomly.

Pair Corralation between BlackRock ESG and Intact Financial

Given the investment horizon of 90 days BlackRock ESG Capital is expected to generate 0.52 times more return on investment than Intact Financial. However, BlackRock ESG Capital is 1.91 times less risky than Intact Financial. It trades about 0.21 of its potential returns per unit of risk. Intact Financial is currently generating about -0.08 per unit of risk. If you would invest  1,488  in BlackRock ESG Capital on May 3, 2025 and sell it today you would earn a total of  137.00  from holding BlackRock ESG Capital or generate 9.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

BlackRock ESG Capital  vs.  Intact Financial

BlackRock ESG Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in BlackRock ESG Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BlackRock ESG may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Intact Financial

Risk-Adjusted Performance

Very Weak

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 BlackRock ESG and Intact Financial

The main advantage of trading using opposite BlackRock ESG and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlackRock ESG 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 BlackRock ESG Capital 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.