Correlation Between Ford and Telus Corp
Can any of the company-specific risk be diversified away by investing in both Ford and Telus 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 Ford and Telus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Telus Corp, you can compare the effects of market volatilities on Ford and Telus 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 Ford with a short position of Telus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Telus Corp.
Diversification Opportunities for Ford and Telus Corp
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Telus is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Telus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telus Corp and Ford 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 Ford Motor are associated (or correlated) with Telus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telus Corp has no effect on the direction of Ford i.e., Ford and Telus Corp go up and down completely randomly.
Pair Corralation between Ford and Telus Corp
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.34 times more return on investment than Telus Corp. However, Ford is 2.34 times more volatile than Telus Corp. It trades about 0.09 of its potential returns per unit of risk. Telus Corp is currently generating about -0.27 per unit of risk. If you would invest 1,156 in Ford Motor on September 7, 2025 and sell it today you would earn a total of 147.00 from holding Ford Motor or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Telus Corp
Performance |
| Timeline |
| Ford Motor |
| Telus Corp |
Ford and Telus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Telus Corp
The main advantage of trading using opposite Ford and Telus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Telus 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 Telus Corp will offset losses from the drop in Telus Corp's long position.| Ford vs. Bangkok Dusit Medical | Ford vs. AeroVironment | Ford vs. Tata Steel Limited | Ford vs. American Medical Technologies |
| Telus Corp vs. Magna Mining | Telus Corp vs. Canso Select Opportunities | Telus Corp vs. Northstar Clean Technologies | Telus Corp vs. American CuMo Mining |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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