Correlation Between TerrAscend Corp and Intact Financial

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

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

Diversification Opportunities for TerrAscend Corp and Intact Financial

-0.76

Correlation Coefficient

TerrAscend Corp  Intact Financial

Pay attention - limited upside

The 3 months correlation between TerrAscend and Intact is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding TerrAscend Corp and Intact Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial and TerrAscend 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 TerrAscend 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 TerrAscend Corp i.e., TerrAscend Corp and Intact Financial go up and down completely randomly.

Pair Corralation between TerrAscend Corp and Intact Financial

Assuming the 90 days trading horizon TerrAscend Corp is expected to generate 6.97 times more return on investment than Intact Financial. However, TerrAscend Corp is 6.97 times more volatile than Intact Financial. It trades about 0.22 of its potential returns per unit of risk. Intact Financial is currently generating about -0.1 per unit of risk. If you would invest  54.00  in TerrAscend Corp on May 21, 2025 and sell it today you would earn a total of  83.00  from holding TerrAscend Corp or generate 153.7% return on investment over 90 days.

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

TerrAscend Corp  vs.  Intact Financial

TerrAscend Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TerrAscend Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TerrAscend Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

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 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 TerrAscend Corp and Intact Financial

The main advantage of trading using opposite TerrAscend Corp and Intact Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TerrAscend Corp 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 TerrAscend 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.