Correlation Between Intact Financial and TriMas

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

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

Diversification Opportunities for Intact Financial and TriMas

-0.38

Correlation Coefficient

Intact Financial  TriMas

Very good diversification

The 3 months correlation between Intact and TriMas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas 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 TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of Intact Financial i.e., Intact Financial and TriMas go up and down completely randomly.

Pair Corralation between Intact Financial and TriMas

Assuming the 90 days horizon Intact Financial is expected to under-perform the TriMas. But the pink sheet apears to be less risky and, when comparing its historical volatility, Intact Financial is 1.52 times less risky than TriMas. The pink sheet trades about -0.04 of its potential returns per unit of risk. The TriMas is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  2,470  in TriMas on May 15, 2025 and sell it today you would earn a total of  1,097  from holding TriMas or generate 44.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Intact Financial  vs.  TriMas

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. Despite nearly stable basic indicators, Intact Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TriMas

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TriMas are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TriMas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intact Financial and TriMas

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

The idea behind Intact Financial and TriMas 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.