Correlation Between Intact Financial and Ritchie Bros

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

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

Diversification Opportunities for Intact Financial and Ritchie Bros

-0.27

Correlation Coefficient

Intact Financial  Ritchie Bros

Very good diversification

The 3 months correlation between Intact and Ritchie is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Intact Financial and Ritchie Bros Auctioneers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ritchie Bros Auctioneers and Intact 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 Intact Financial are associated (or correlated) with Ritchie Bros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ritchie Bros Auctioneers has no effect on the direction of Intact Financial i.e., Intact Financial and Ritchie Bros go up and down completely randomly.

Pair Corralation between Intact Financial and Ritchie Bros

Assuming the 90 days trading horizon Intact Financial is expected to generate 1.52 times less return on investment than Ritchie Bros. But when comparing it to its historical volatility, Intact Financial is 1.44 times less risky than Ritchie Bros. It trades about 0.07 of its potential returns per unit of risk. Ritchie Bros Auctioneers is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  8,626  in Ritchie Bros Auctioneers on July 19, 2025 and sell it today you would earn a total of  5,462  from holding Ritchie Bros Auctioneers or generate 63.32% return on investment over 90 days.

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

Intact Financial  vs.  Ritchie Bros Auctioneers

Intact Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Intact Financial 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 fundamental indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Ritchie Bros Auctioneers

Risk-Adjusted Performance

Weakest

Over the last 90 days Ritchie Bros Auctioneers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ritchie Bros is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Intact Financial and Ritchie Bros

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

The idea behind Intact Financial and Ritchie Bros Auctioneers 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.