Correlation Between Quebecor and Teledyne Technologies

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

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

Diversification Opportunities for Quebecor and Teledyne Technologies

-0.62

Correlation Coefficient

Quebecor  Teledyne Technologies

Excellent diversification

The 3 months correlation between Quebecor and Teledyne is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Quebecor and Teledyne Technologies Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teledyne Technologies and Quebecor 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 Quebecor are associated (or correlated) with Teledyne Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teledyne Technologies has no effect on the direction of Quebecor i.e., Quebecor and Teledyne Technologies go up and down completely randomly.

Pair Corralation between Quebecor and Teledyne Technologies

Assuming the 90 days horizon Quebecor is expected to generate 11.38 times less return on investment than Teledyne Technologies. In addition to that, Quebecor is 1.06 times more volatile than Teledyne Technologies Incorporated. It trades about 0.0 of its total potential returns per unit of risk. Teledyne Technologies Incorporated is currently generating about 0.04 per unit of volatility. If you would invest  37,500  in Teledyne Technologies Incorporated on October 24, 2024 and sell it today you would earn a total of  8,400  from holding Teledyne Technologies Incorporated or generate 22.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Quebecor  vs.  Teledyne Technologies Incorpor

Quebecor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quebecor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Teledyne Technologies

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Teledyne Technologies Incorporated are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Teledyne Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Quebecor and Teledyne Technologies

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

The idea behind Quebecor and Teledyne Technologies Incorporated 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.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.