Correlation Between TeraGo and Intermap Technologies

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

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

Diversification Opportunities for TeraGo and Intermap Technologies

-0.34

Correlation Coefficient

TeraGo  Intermap Technologies

Very good diversification

The 3 months correlation between TeraGo and Intermap is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding TeraGo Inc and Intermap Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermap Technologies and TeraGo 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 TeraGo Inc are associated (or correlated) with Intermap Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermap Technologies has no effect on the direction of TeraGo i.e., TeraGo and Intermap Technologies go up and down completely randomly.

Pair Corralation between TeraGo and Intermap Technologies

Assuming the 90 days trading horizon TeraGo Inc is expected to generate 0.66 times more return on investment than Intermap Technologies. However, TeraGo Inc is 1.51 times less risky than Intermap Technologies. It trades about -0.06 of its potential returns per unit of risk. Intermap Technologies Corp is currently generating about -0.06 per unit of risk. If you would invest  121.00  in TeraGo Inc on December 23, 2024 and sell it today you would lose (18.00) from holding TeraGo Inc or give up 14.88% of portfolio value over 90 days.

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

TeraGo Inc  vs.  Intermap Technologies Corp

TeraGo Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days TeraGo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

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.

Pair Trading with TeraGo and Intermap Technologies

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

The idea behind TeraGo Inc and Intermap Technologies Corp 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.