Correlation Between Telus Corp and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Telus Corp and Senvest Capital 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 Senvest Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and Senvest Capital, you can compare the effects of market volatilities on Telus Corp and Senvest Capital 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 Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and Senvest Capital.
Diversification Opportunities for Telus Corp and Senvest Capital
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telus and Senvest is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital 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 Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Telus Corp i.e., Telus Corp and Senvest Capital go up and down completely randomly.
Pair Corralation between Telus Corp and Senvest Capital
Given the investment horizon of 90 days Telus Corp is expected to generate 4.58 times less return on investment than Senvest Capital. But when comparing it to its historical volatility, Telus Corp is 1.28 times less risky than Senvest Capital. It trades about 0.01 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 32,500 in Senvest Capital on October 16, 2024 and sell it today you would earn a total of 5,750 from holding Senvest Capital or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. Senvest Capital
Performance |
| Timeline |
| Telus Corp |
| Senvest Capital |
Telus Corp and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and Senvest Capital
The main advantage of trading using opposite Telus Corp and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Telus Corp vs. BCE Inc | Telus Corp vs. Fortis Inc | Telus Corp vs. Enbridge | Telus Corp vs. Toronto Dominion Bank |
| Senvest Capital vs. Gfl Environmental Holdings | Senvest Capital vs. DIRTT Environmental Solutions | Senvest Capital vs. Canadian Utilities Limited | Senvest Capital vs. T2 Metals Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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