Correlation Between Intermap Technologies and Greenfire Resources

Can any of the company-specific risk be diversified away by investing in both Intermap Technologies and Greenfire Resources 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 Greenfire Resources 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 Greenfire Resources, you can compare the effects of market volatilities on Intermap Technologies and Greenfire Resources 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 Greenfire Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intermap Technologies and Greenfire Resources.

Diversification Opportunities for Intermap Technologies and Greenfire Resources

0.74

Correlation Coefficient

Intermap Technologies  Greenfire Resources

Poor diversification

The 3 months correlation between Intermap and Greenfire is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and Greenfire Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenfire Resources 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 Greenfire Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenfire Resources has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and Greenfire Resources go up and down completely randomly.

Pair Corralation between Intermap Technologies and Greenfire Resources

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to generate 2.07 times more return on investment than Greenfire Resources. However, Intermap Technologies is 2.07 times more volatile than Greenfire Resources. It trades about -0.07 of its potential returns per unit of risk. Greenfire Resources is currently generating about -0.18 per unit of risk. If you would invest  249.00  in Intermap Technologies Corp on December 24, 2024 and sell it today you would lose (69.00) from holding Intermap Technologies Corp or give up 27.71% of portfolio value over 90 days.

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

Intermap Technologies Corp  vs.  Greenfire Resources

Intermap Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intermap Technologies Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Greenfire Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenfire Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Intermap Technologies and Greenfire Resources

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

The idea behind Intermap Technologies Corp and Greenfire Resources 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.