Correlation Between Telos Corp and Backblaze
Can any of the company-specific risk be diversified away by investing in both Telos Corp and Backblaze 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 Telos Corp and Backblaze into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telos Corp and Backblaze, you can compare the effects of market volatilities on Telos Corp and Backblaze 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 Telos Corp with a short position of Backblaze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telos Corp and Backblaze.
Diversification Opportunities for Telos Corp and Backblaze
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telos and Backblaze is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Telos Corp and Backblaze in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Backblaze and Telos 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 Telos Corp are associated (or correlated) with Backblaze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Backblaze has no effect on the direction of Telos Corp i.e., Telos Corp and Backblaze go up and down completely randomly.
Pair Corralation between Telos Corp and Backblaze
Considering the 90-day investment horizon Telos Corp is expected to under-perform the Backblaze. But the stock apears to be less risky and, when comparing its historical volatility, Telos Corp is 1.0 times less risky than Backblaze. The stock trades about -0.07 of its potential returns per unit of risk. The Backblaze is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 726.00 in Backblaze on August 28, 2024 and sell it today you would lose (66.00) from holding Backblaze or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telos Corp vs. Backblaze
Performance |
| Timeline |
| Telos Corp |
| Backblaze |
Telos Corp and Backblaze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telos Corp and Backblaze
The main advantage of trading using opposite Telos Corp and Backblaze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telos Corp position performs unexpectedly, Backblaze 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 Backblaze will offset losses from the drop in Backblaze's long position.| Telos Corp vs. GigaCloud Technology Class | Telos Corp vs. Arqit Quantum | Telos Corp vs. Cemtrex | Telos Corp vs. Rapid7 Inc |
| Backblaze vs. ACI Worldwide | Backblaze vs. Remitly Global | Backblaze vs. EverCommerce | Backblaze vs. Global Blue Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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