Correlation Between D2L and Telesat Corp

Can any of the company-specific risk be diversified away by investing in both D2L and Telesat Corp 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 D2L and Telesat Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between D2L Inc and Telesat Corp, you can compare the effects of market volatilities on D2L and Telesat Corp 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 D2L with a short position of Telesat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of D2L and Telesat Corp.

Diversification Opportunities for D2L and Telesat Corp

-0.43

Correlation Coefficient

D2L  Telesat Corp

Very good diversification

The 3 months correlation between D2L and Telesat is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding D2L Inc and Telesat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telesat Corp and D2L 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 D2L Inc are associated (or correlated) with Telesat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telesat Corp has no effect on the direction of D2L i.e., D2L and Telesat Corp go up and down completely randomly.

Pair Corralation between D2L and Telesat Corp

Assuming the 90 days trading horizon D2L Inc is expected to under-perform the Telesat Corp. But the stock apears to be less risky and, when comparing its historical volatility, D2L Inc is 2.25 times less risky than Telesat Corp. The stock trades about -0.08 of its potential returns per unit of risk. The Telesat Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,633  in Telesat Corp on December 29, 2024 and sell it today you would earn a total of  275.00  from holding Telesat Corp or generate 16.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

D2L Inc  vs.  Telesat Corp

D2L Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days D2L Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Telesat Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Telesat Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Telesat Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with D2L and Telesat Corp

The main advantage of trading using opposite D2L and Telesat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if D2L position performs unexpectedly, Telesat Corp 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 Telesat Corp will offset losses from the drop in Telesat Corp's long position.

The idea behind D2L Inc and Telesat Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.