Correlation Between Telus Corp and Integral
Can any of the company-specific risk be diversified away by investing in both Telus Corp and Integral 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 Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and Integral Ad Science, you can compare the effects of market volatilities on Telus Corp and Integral 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 Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and Integral.
Diversification Opportunities for Telus Corp and Integral
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Telus and Integral is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Telus Corp i.e., Telus Corp and Integral go up and down completely randomly.
Pair Corralation between Telus Corp and Integral
Allowing for the 90-day total investment horizon Telus Corp is expected to under-perform the Integral. But the stock apears to be less risky and, when comparing its historical volatility, Telus Corp is 2.97 times less risky than Integral. The stock trades about -0.04 of its potential returns per unit of risk. The Integral Ad Science is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,036 in Integral Ad Science on August 27, 2024 and sell it today you would earn a total of 72.00 from holding Integral Ad Science or generate 6.95% 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. Integral Ad Science
Performance |
| Timeline |
| Telus Corp |
| Integral Ad Science |
Telus Corp and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and Integral
The main advantage of trading using opposite Telus Corp and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Telus Corp vs. Rogers Communications | Telus Corp vs. Vodafone Group PLC | Telus Corp vs. Orange SA ADR | Telus Corp vs. America Movil SAB |
| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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