Correlation Between IA Financial and InRetail Per

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

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

Diversification Opportunities for IA Financial and InRetail Per

0.0

Correlation Coefficient

IA Financial  InRetail Per

Pay attention - limited upside

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

Pair Corralation between IA Financial and InRetail Per

Assuming the 90 days horizon iA Financial is expected to generate 2.38 times more return on investment than InRetail Per. However, IA Financial is 2.38 times more volatile than InRetail Per Corp. It trades about 0.09 of its potential returns per unit of risk. InRetail Per Corp is currently generating about -0.04 per unit of risk. If you would invest  9,363  in iA Financial on September 5, 2025 and sell it today you would earn a total of  2,588  from holding iA Financial or generate 27.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

iA Financial  vs.  InRetail Per Corp

iA Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in iA Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, IA Financial may actually be approaching a critical reversion point that can send shares even higher in January 2026.

InRetail Per Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days InRetail Per Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, InRetail Per is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with IA Financial and InRetail Per

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

The idea behind iA Financial and InRetail Per 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.