Correlation Between Intermap Technologies and ROYAL CANADIAN

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

Diversification Opportunities for Intermap Technologies and ROYAL CANADIAN

0.55

Correlation Coefficient

Intermap Technologies  ROYAL CANADIAN

Very weak diversification

The 3 months correlation between Intermap and ROYAL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Intermap Technologies Corp and ROYAL CANADIAN MINT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROYAL CANADIAN MINT 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 ROYAL CANADIAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROYAL CANADIAN MINT has no effect on the direction of Intermap Technologies i.e., Intermap Technologies and ROYAL CANADIAN go up and down completely randomly.

Pair Corralation between Intermap Technologies and ROYAL CANADIAN

Assuming the 90 days trading horizon Intermap Technologies Corp is expected to under-perform the ROYAL CANADIAN. In addition to that, Intermap Technologies is 3.79 times more volatile than ROYAL CANADIAN MINT. It trades about -0.02 of its total potential returns per unit of risk. ROYAL CANADIAN MINT is currently generating about 0.22 per unit of volatility. If you would invest  2,736  in ROYAL CANADIAN MINT on December 2, 2024 and sell it today you would earn a total of  364.00  from holding ROYAL CANADIAN MINT or generate 13.3% return on investment over 90 days.

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

Intermap Technologies Corp  vs.  ROYAL CANADIAN MINT

Intermap Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intermap Technologies Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Intermap Technologies displayed solid returns over the last few months and may actually be approaching a breakup point.

ROYAL CANADIAN MINT

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ROYAL CANADIAN MINT are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ROYAL CANADIAN unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intermap Technologies and ROYAL CANADIAN

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

The idea behind Intermap Technologies Corp and ROYAL CANADIAN MINT 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.