Correlation Between Telus Corp and Chemtrade Logistics
Can any of the company-specific risk be diversified away by investing in both Telus Corp and Chemtrade Logistics 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 Chemtrade Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and Chemtrade Logistics Income, you can compare the effects of market volatilities on Telus Corp and Chemtrade Logistics 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 Chemtrade Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and Chemtrade Logistics.
Diversification Opportunities for Telus Corp and Chemtrade Logistics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Telus and Chemtrade is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and Chemtrade Logistics Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemtrade Logistics 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 Chemtrade Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemtrade Logistics has no effect on the direction of Telus Corp i.e., Telus Corp and Chemtrade Logistics go up and down completely randomly.
Pair Corralation between Telus Corp and Chemtrade Logistics
Given the investment horizon of 90 days Telus Corp is expected to under-perform the Chemtrade Logistics. But the stock apears to be less risky and, when comparing its historical volatility, Telus Corp is 1.65 times less risky than Chemtrade Logistics. The stock trades about -0.36 of its potential returns per unit of risk. The Chemtrade Logistics Income is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,408 in Chemtrade Logistics Income on September 9, 2025 and sell it today you would lose (9.00) from holding Chemtrade Logistics Income or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. Chemtrade Logistics Income
Performance |
| Timeline |
| Telus Corp |
| Chemtrade Logistics |
Telus Corp and Chemtrade Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and Chemtrade Logistics
The main advantage of trading using opposite Telus Corp and Chemtrade Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, Chemtrade Logistics 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 Chemtrade Logistics will offset losses from the drop in Chemtrade Logistics' long position.| Telus Corp vs. BCE Inc | Telus Corp vs. Rogers Communications | Telus Corp vs. Rogers Communications | Telus Corp vs. Quebecor |
| Chemtrade Logistics vs. Extendicare | Chemtrade Logistics vs. NorthWest Healthcare Properties | Chemtrade Logistics vs. Exchange Income | Chemtrade Logistics vs. Freehold Royalties |
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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