Correlation Between Telus Corp and MCAN Mortgage
Can any of the company-specific risk be diversified away by investing in both Telus Corp and MCAN Mortgage 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 Telus Corp and MCAN Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and MCAN Mortgage, you can compare the effects of market volatilities on Telus Corp and MCAN Mortgage 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 Telus Corp with a short position of MCAN Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and MCAN Mortgage.
Diversification Opportunities for Telus Corp and MCAN Mortgage
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telus and MCAN is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and MCAN Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCAN Mortgage and Telus Corp 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 Telus Corp are associated (or correlated) with MCAN Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCAN Mortgage has no effect on the direction of Telus Corp i.e., Telus Corp and MCAN Mortgage go up and down completely randomly.
Pair Corralation between Telus Corp and MCAN Mortgage
Given the investment horizon of 90 days Telus Corp is expected to under-perform the MCAN Mortgage. But the stock apears to be less risky and, when comparing its historical volatility, Telus Corp is 1.37 times less risky than MCAN Mortgage. The stock trades about -0.04 of its potential returns per unit of risk. The MCAN Mortgage is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,849 in MCAN Mortgage on August 31, 2024 and sell it today you would earn a total of 107.00 from holding MCAN Mortgage or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. MCAN Mortgage
Performance |
| Timeline |
| Telus Corp |
| MCAN Mortgage |
Telus Corp and MCAN Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and MCAN Mortgage
The main advantage of trading using opposite Telus Corp and MCAN Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, MCAN Mortgage 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 MCAN Mortgage will offset losses from the drop in MCAN Mortgage's long position.| Telus Corp vs. BCE Inc | Telus Corp vs. Fortis Inc | Telus Corp vs. Enbridge | Telus Corp vs. Toronto Dominion Bank |
| MCAN Mortgage vs. Timbercreek Financial Corp | MCAN Mortgage vs. Atrium Mortgage Investment | MCAN Mortgage vs. Firm Capital Mortgage | MCAN Mortgage vs. First National Financial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |