Correlation Between Telos Corp and Cerberus Cyber

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

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

Diversification Opportunities for Telos Corp and Cerberus Cyber

0.53

Correlation Coefficient

Telos Corp  Cerberus Cyber

Very weak diversification

The 3 months correlation between Telos and Cerberus is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Telos Corp and Cerberus Cyber Sentinel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cerberus Cyber Sentinel and Telos 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 Telos Corp are associated (or correlated) with Cerberus Cyber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cerberus Cyber Sentinel has no effect on the direction of Telos Corp i.e., Telos Corp and Cerberus Cyber go up and down completely randomly.

Pair Corralation between Telos Corp and Cerberus Cyber

Considering the 90-day investment horizon Telos Corp is expected to generate 0.38 times more return on investment than Cerberus Cyber. However, Telos Corp is 2.64 times less risky than Cerberus Cyber. It trades about -0.13 of its potential returns per unit of risk. Cerberus Cyber Sentinel is currently generating about -0.28 per unit of risk. If you would invest  343.00  in Telos Corp on December 28, 2024 and sell it today you would lose (97.00) from holding Telos Corp or give up 28.28% of portfolio value over 90 days.

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

Telos Corp  vs.  Cerberus Cyber Sentinel

Telos Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Telos Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Cerberus Cyber Sentinel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cerberus Cyber Sentinel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak 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.

Pair Trading with Telos Corp and Cerberus Cyber

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

The idea behind Telos Corp and Cerberus Cyber Sentinel 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.