Correlation Between TUT Fitness and Intact Financial

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

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

Diversification Opportunities for TUT Fitness and Intact Financial

0.0

Correlation Coefficient

TUT Fitness  Intact Financial

Pay attention - limited upside

The 3 months correlation between TUT and Intact is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TUT Fitness Group and Intact Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intact Financial Corp and TUT Fitness 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 TUT Fitness Group are associated (or correlated) with Intact Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intact Financial Corp has no effect on the direction of TUT Fitness i.e., TUT Fitness and Intact Financial go up and down completely randomly.

Pair Corralation between TUT Fitness and Intact Financial

Assuming the 90 days horizon TUT Fitness Group is expected to generate 25.99 times more return on investment than Intact Financial. However, TUT Fitness is 25.99 times more volatile than Intact Financial Corp. It trades about 0.03 of its potential returns per unit of risk. Intact Financial Corp is currently generating about 0.09 per unit of risk. If you would invest  40.00  in TUT Fitness Group on April 20, 2025 and sell it today you would lose (32.00) from holding TUT Fitness Group or give up 80.0% of portfolio value over 90 days.

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

TUT Fitness Group  vs.  Intact Financial Corp

TUT Fitness Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days TUT Fitness Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, TUT Fitness is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Intact Financial Corp

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Intact Financial Corp are ranked lower than 30 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Intact Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with TUT Fitness and Intact Financial

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

The idea behind TUT Fitness Group and Intact Financial 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.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.