Correlation Between IAMGold and InTest

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

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

Diversification Opportunities for IAMGold and InTest

0.19

Correlation Coefficient

IAMGold  InTest

Average diversification

The 3 months correlation between IAMGold and InTest is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and IAMGold 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 IAMGold are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of IAMGold i.e., IAMGold and InTest go up and down completely randomly.

Pair Corralation between IAMGold and InTest

Considering the 90-day investment horizon IAMGold is expected to generate 0.87 times more return on investment than InTest. However, IAMGold is 1.15 times less risky than InTest. It trades about 0.4 of its potential returns per unit of risk. inTest is currently generating about -0.07 per unit of risk. If you would invest  1,096  in IAMGold on September 5, 2025 and sell it today you would earn a total of  418.50  from holding IAMGold or generate 38.18% return on investment over 90 days.

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

IAMGold  vs.  inTest

IAMGold

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IAMGold are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, IAMGold reported solid returns over the last few months and may actually be approaching a breakup point.

inTest

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in inTest are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, InTest may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with IAMGold and InTest

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

The idea behind IAMGold and inTest 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.