Correlation Between Intermap Technologies and Dayforce

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

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

Diversification Opportunities for Intermap Technologies and Dayforce

0.65

Correlation Coefficient

Intermap Technologies  Dayforce

Poor diversification

The 3 months correlation between Intermap and Dayforce is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Dayforce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dayforce and Intermap Technologies 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 Intermap Technologies Corp are associated (or correlated) with Dayforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dayforce has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Dayforce go up and down completely randomly.

Pair Corralation between Intermap Technologies and Dayforce

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 3.51 times more return on investment than Dayforce. However, Intermap Technologies is 3.51 times more volatile than Dayforce. It trades about 0.31 of its potential returns per unit of risk. Dayforce is currently generating about -0.22 per unit of risk. If you would invest  187.00  in Intermap Technologies Corp on October 1, 2024 and sell it today you would earn a total of  72.00  from holding Intermap Technologies Corp or generate 38.5% return on investment over 90 days.

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

Intermap Technologies Corp  vs.  Dayforce

Intermap Technologies

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

Dayforce

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dayforce are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Dayforce displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intermap Technologies and Dayforce

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

The idea behind Intermap Technologies Corp and Dayforce 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.