Correlation Between Intact Financial and Akasha Wira
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Akasha Wira 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 Akasha Wira into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Akasha Wira International, you can compare the effects of market volatilities on Intact Financial and Akasha Wira 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 Akasha Wira. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Akasha Wira.
Diversification Opportunities for Intact Financial and Akasha Wira
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intact and Akasha is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Akasha Wira International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akasha Wira International 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 Akasha Wira. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akasha Wira International has no effect on the direction of Intact Financial i.e., Intact Financial and Akasha Wira go up and down completely randomly.
Pair Corralation between Intact Financial and Akasha Wira
Assuming the 90 days trading horizon Intact Financial is expected to generate 0.33 times more return on investment than Akasha Wira. However, Intact Financial is 3.03 times less risky than Akasha Wira. It trades about 0.08 of its potential returns per unit of risk. Akasha Wira International is currently generating about -0.18 per unit of risk. If you would invest 21,881 in Intact Financial on January 25, 2024 and sell it today you would earn a total of 208.00 from holding Intact Financial or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Intact Financial vs. Akasha Wira International
Performance |
| Timeline |
| Intact Financial |
| Akasha Wira International |
Intact Financial and Akasha Wira Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Akasha Wira
The main advantage of trading using opposite Intact Financial and Akasha Wira positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Akasha Wira 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 Akasha Wira will offset losses from the drop in Akasha Wira's long position.| Intact Financial vs. Element Fleet Management | Intact Financial vs. Martinrea International | Intact Financial vs. Mullen Group |
| Akasha Wira vs. Vale Indonesia Tbk | Akasha Wira vs. Timah Persero Tbk | Akasha Wira vs. United Tractors Tbk | Akasha Wira vs. Semen Indonesia Persero |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |