Correlation Between Telos Corp and Glimpse

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

By analyzing existing cross correlation between Telos Corp and Glimpse Group, you can compare the effects of market volatilities on Telos Corp and Glimpse 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 Glimpse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telos Corp and Glimpse.

Diversification Opportunities for Telos Corp and Glimpse

0.1

Correlation Coefficient

Telos Corp  Glimpse

Average diversification

The 3 months correlation between Telos and Glimpse is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Telos Corp and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group 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 Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of Telos Corp i.e., Telos Corp and Glimpse go up and down completely randomly.

Pair Corralation between Telos Corp and Glimpse

Considering the 90-day investment horizon Telos Corp is expected to under-perform the Glimpse. But the stock apears to be less risky and, when comparing its historical volatility, Telos Corp is 4.77 times less risky than Glimpse. The stock trades about -0.05 of its potential returns per unit of risk. The Glimpse Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  88.00  in Glimpse Group on December 1, 2024 and sell it today you would earn a total of  41.00  from holding Glimpse Group or generate 46.59% return on investment over 90 days.

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

Telos Corp  vs.  Glimpse Group

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 latest uncertain performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Glimpse Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glimpse Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Glimpse reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Telos Corp and Glimpse

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

The idea behind Telos Corp and Glimpse Group 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.