Correlation Between Photronics and TELUS International
Can any of the company-specific risk be diversified away by investing in both Photronics and TELUS International 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 Photronics and TELUS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Photronics and TELUS International, you can compare the effects of market volatilities on Photronics and TELUS International 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 Photronics with a short position of TELUS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Photronics and TELUS International.
Diversification Opportunities for Photronics and TELUS International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Photronics and TELUS is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Photronics and TELUS International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS International and Photronics 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 Photronics are associated (or correlated) with TELUS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELUS International has no effect on the direction of Photronics i.e., Photronics and TELUS International go up and down completely randomly.
Pair Corralation between Photronics and TELUS International
Given the investment horizon of 90 days Photronics is expected to generate 11.63 times more return on investment than TELUS International. However, Photronics is 11.63 times more volatile than TELUS International. It trades about 0.16 of its potential returns per unit of risk. TELUS International is currently generating about -0.21 per unit of risk. If you would invest 2,281 in Photronics on September 13, 2025 and sell it today you would earn a total of 1,686 from holding Photronics or generate 73.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Photronics vs. TELUS International
Performance |
| Timeline |
| Photronics |
| TELUS International |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Photronics and TELUS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Photronics and TELUS International
The main advantage of trading using opposite Photronics and TELUS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Photronics position performs unexpectedly, TELUS International 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 International will offset losses from the drop in TELUS International's long position.| Photronics vs. Himax Technologies | Photronics vs. MaxLinear | Photronics vs. Ultra Clean Holdings | Photronics vs. nLIGHT Inc |
| TELUS International vs. A10 Network | TELUS International vs. Rapid7 Inc | TELUS International vs. Fastly Inc | TELUS International vs. Rezolve AI Limited |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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