Correlation Between FirstService Corp and INTEL CDR

Can any of the company-specific risk be diversified away by investing in both FirstService Corp and INTEL CDR 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 FirstService Corp and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FirstService Corp and INTEL CDR, you can compare the effects of market volatilities on FirstService Corp and INTEL CDR 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 FirstService Corp with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstService Corp and INTEL CDR.

Diversification Opportunities for FirstService Corp and INTEL CDR

-0.36

Correlation Coefficient

FirstService Corp  INTEL CDR

Very good diversification

The 3 months correlation between FirstService and INTEL is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding FirstService Corp and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and FirstService Corp 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 FirstService Corp are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of FirstService Corp i.e., FirstService Corp and INTEL CDR go up and down completely randomly.

Pair Corralation between FirstService Corp and INTEL CDR

Assuming the 90 days trading horizon FirstService Corp is expected to generate 0.58 times more return on investment than INTEL CDR. However, FirstService Corp is 1.72 times less risky than INTEL CDR. It trades about 0.12 of its potential returns per unit of risk. INTEL CDR is currently generating about -0.06 per unit of risk. If you would invest  24,603  in FirstService Corp on May 10, 2025 and sell it today you would earn a total of  2,736  from holding FirstService Corp or generate 11.12% return on investment over 90 days.

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

FirstService Corp  vs.  INTEL CDR

FirstService Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in FirstService Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, FirstService Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

INTEL CDR

Risk-Adjusted Performance

Weakest

Over the last 90 days INTEL CDR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with FirstService Corp and INTEL CDR

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

The idea behind FirstService Corp and INTEL CDR 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.