Correlation Between TC Energy and Intact Financial

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

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

Diversification Opportunities for TC Energy and Intact Financial

-0.2

Correlation Coefficient

TC Energy  Intact Financial

Good diversification

The 3 months correlation between TRP and Intact is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding TC Energy Corp and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial and TC Energy 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 TC Energy Corp 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 TC Energy i.e., TC Energy and Intact Financial go up and down completely randomly.

Pair Corralation between TC Energy and Intact Financial

Assuming the 90 days trading horizon TC Energy Corp is expected to under-perform the Intact Financial. But the stock apears to be less risky and, when comparing its historical volatility, TC Energy Corp is 1.25 times less risky than Intact Financial. The stock trades about -0.09 of its potential returns per unit of risk. The Intact Financial is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  30,416  in Intact Financial on May 2, 2025 and sell it today you would lose (1,871) from holding Intact Financial or give up 6.15% of portfolio value over 90 days.

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

TC Energy Corp  vs.  Intact Financial

TC Energy Corp

Risk-Adjusted Performance

Very Weak

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

Intact Financial

Risk-Adjusted Performance

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 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.

Pair Trading with TC Energy and Intact Financial

The main advantage of trading using opposite TC Energy and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC Energy 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 TC Energy Corp 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.