Correlation Between Telus Corp and ECN Capital
Can any of the company-specific risk be diversified away by investing in both Telus Corp and ECN Capital 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 ECN Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and ECN Capital Corp, you can compare the effects of market volatilities on Telus Corp and ECN Capital 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 ECN Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and ECN Capital.
Diversification Opportunities for Telus Corp and ECN Capital
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Telus and ECN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and ECN Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECN Capital Corp 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 ECN Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECN Capital Corp has no effect on the direction of Telus Corp i.e., Telus Corp and ECN Capital go up and down completely randomly.
Pair Corralation between Telus Corp and ECN Capital
Given the investment horizon of 90 days Telus Corp is expected to generate 0.49 times more return on investment than ECN Capital. However, Telus Corp is 2.04 times less risky than ECN Capital. It trades about 0.1 of its potential returns per unit of risk. ECN Capital Corp is currently generating about -0.09 per unit of risk. If you would invest 1,898 in Telus Corp on December 28, 2024 and sell it today you would earn a total of 145.00 from holding Telus Corp or generate 7.64% 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. ECN Capital Corp
Performance |
Timeline |
Telus Corp |
ECN Capital Corp |
Telus Corp and ECN Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Telus Corp and ECN Capital
The main advantage of trading using opposite Telus Corp and ECN Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, ECN Capital 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 ECN Capital will offset losses from the drop in ECN Capital's long position.Telus Corp vs. BCE Inc | Telus Corp vs. Fortis Inc | Telus Corp vs. Enbridge | Telus Corp vs. Toronto Dominion Bank |
ECN Capital vs. Element Fleet Management | ECN Capital vs. Colliers International Group | ECN Capital vs. Altus Group Limited | ECN Capital vs. FirstService Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |