Correlation Between Intact Financial and Western Union
Can any of the company-specific risk be diversified away by investing in both Intact Financial and Western Union 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 Western Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intact Financial and Western Union Co, you can compare the effects of market volatilities on Intact Financial and Western Union 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 Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intact Financial and Western Union.
Diversification Opportunities for Intact Financial and Western Union
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intact and Western is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Western Union Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union 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 Western Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of Intact Financial i.e., Intact Financial and Western Union go up and down completely randomly.
Pair Corralation between Intact Financial and Western Union
Assuming the 90 days trading horizon Intact Financial is expected to generate 1.06 times less return on investment than Western Union. But when comparing it to its historical volatility, Intact Financial is 1.26 times less risky than Western Union. It trades about 0.1 of its potential returns per unit of risk. Western Union Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,197 in Western Union Co on January 20, 2024 and sell it today you would earn a total of 96.00 from holding Western Union Co or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intact Financial vs. Western Union Co
Performance |
| Timeline |
| Intact Financial |
| Western Union |
Intact Financial and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intact Financial and Western Union
The main advantage of trading using opposite Intact Financial and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intact Financial position performs unexpectedly, Western Union 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 Western Union will offset losses from the drop in Western Union's long position.| Intact Financial vs. iA Financial | Intact Financial vs. Thomson Reuters Corp | Intact Financial vs. Metro Inc | Intact Financial vs. Waste Connections |
| Western Union vs. Expedia Group | Western Union vs. Trip Group Ltd | Western Union vs. Booking Holdings | Western Union vs. Despegar Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |