Correlation Between Telos Corp and CiT
Can any of the company-specific risk be diversified away by investing in both Telos Corp and CiT 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 CiT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telos Corp and CiT Inc, you can compare the effects of market volatilities on Telos Corp and CiT 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 CiT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telos Corp and CiT.
Diversification Opportunities for Telos Corp and CiT
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Telos and CiT is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Telos Corp and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc 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 CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Telos Corp i.e., Telos Corp and CiT go up and down completely randomly.
Pair Corralation between Telos Corp and CiT
Considering the 90-day investment horizon Telos Corp is expected to generate 1.76 times more return on investment than CiT. However, Telos Corp is 1.76 times more volatile than CiT Inc. It trades about 0.02 of its potential returns per unit of risk. CiT Inc is currently generating about 0.03 per unit of risk. If you would invest 474.00 in Telos Corp on August 27, 2024 and sell it today you would lose (152.00) from holding Telos Corp or give up 32.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telos Corp vs. CiT Inc
Performance |
| Timeline |
| Telos Corp |
| CiT Inc |
Telos Corp and CiT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telos Corp and CiT
The main advantage of trading using opposite Telos Corp and CiT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telos Corp position performs unexpectedly, CiT 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 CiT will offset losses from the drop in CiT's long position.| Telos Corp vs. GigaCloud Technology Class | Telos Corp vs. Arqit Quantum | Telos Corp vs. Cemtrex | Telos Corp vs. Rapid7 Inc |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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