Correlation Between Telus Corp and VEON
Can any of the company-specific risk be diversified away by investing in both Telus Corp and VEON 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 VEON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and VEON, you can compare the effects of market volatilities on Telus Corp and VEON 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 VEON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and VEON.
Diversification Opportunities for Telus Corp and VEON
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telus and VEON is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and VEON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VEON 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 VEON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VEON has no effect on the direction of Telus Corp i.e., Telus Corp and VEON go up and down completely randomly.
Pair Corralation between Telus Corp and VEON
Allowing for the 90-day total investment horizon Telus Corp is expected to generate 23.54 times less return on investment than VEON. But when comparing it to its historical volatility, Telus Corp is 2.58 times less risky than VEON. It trades about 0.04 of its potential returns per unit of risk. VEON is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 3,904 in VEON on October 21, 2024 and sell it today you would earn a total of 696.00 from holding VEON or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. VEON
Performance |
| Timeline |
| Telus Corp |
| VEON |
Telus Corp and VEON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and VEON
The main advantage of trading using opposite Telus Corp and VEON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, VEON 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 VEON will offset losses from the drop in VEON's long position.| Telus Corp vs. Rogers Communications | Telus Corp vs. Vodafone Group PLC | Telus Corp vs. America Movil SAB | Telus Corp vs. BCE Inc |
| VEON vs. Telecom Argentina SA | VEON vs. Telkom Indonesia Tbk | VEON vs. PLDT Inc ADR | VEON vs. Telefonica Brasil SA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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