Correlation Between Intact Financial and Equitable

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

By analyzing existing cross correlation between Intact Financial and Equitable Group, you can compare the effects of market volatilities on Intact Financial and Equitable 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 Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Equitable.

Diversification Opportunities for Intact Financial and Equitable

-0.16

Correlation Coefficient

Intact Financial  Equitable

Good diversification

The 3 months correlation between Intact and Equitable is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Equitable Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Group 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 Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Group has no effect on the direction of Intact Financial i.e., Intact Financial and Equitable go up and down completely randomly.

Pair Corralation between Intact Financial and Equitable

Assuming the 90 days trading horizon Intact Financial is expected to under-perform the Equitable. But the stock apears to be less risky and, when comparing its historical volatility, Intact Financial is 1.26 times less risky than Equitable. The stock trades about -0.02 of its potential returns per unit of risk. The Equitable Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  6,930  in Equitable Group on May 10, 2025 and sell it today you would earn a total of  463.00  from holding Equitable Group or generate 6.68% return on investment over 90 days.

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

Intact Financial  vs.  Equitable Group

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 very healthy fundamental indicators, Intact Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Equitable Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Equitable Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Equitable may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intact Financial and Equitable

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

The idea behind Intact Financial and Equitable Group 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.