Correlation Between Telus Corp and Lundin Gold
Can any of the company-specific risk be diversified away by investing in both Telus Corp and Lundin Gold 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 Lundin Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and Lundin Gold, you can compare the effects of market volatilities on Telus Corp and Lundin Gold 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 Lundin Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and Lundin Gold.
Diversification Opportunities for Telus Corp and Lundin Gold
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Telus and Lundin is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and Lundin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lundin Gold 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 Lundin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lundin Gold has no effect on the direction of Telus Corp i.e., Telus Corp and Lundin Gold go up and down completely randomly.
Pair Corralation between Telus Corp and Lundin Gold
Given the investment horizon of 90 days Telus Corp is expected to under-perform the Lundin Gold. But the stock apears to be less risky and, when comparing its historical volatility, Telus Corp is 3.76 times less risky than Lundin Gold. The stock trades about -0.28 of its potential returns per unit of risk. The Lundin Gold is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,128 in Lundin Gold on September 11, 2025 and sell it today you would earn a total of 1,629 from holding Lundin Gold or generate 17.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. Lundin Gold
Performance |
| Timeline |
| Telus Corp |
| Lundin Gold |
Telus Corp and Lundin Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and Lundin Gold
The main advantage of trading using opposite Telus Corp and Lundin Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, Lundin Gold 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 Lundin Gold will offset losses from the drop in Lundin Gold's long position.| Telus Corp vs. BCE Inc | Telus Corp vs. Rogers Communications | Telus Corp vs. Rogers Communications | Telus Corp vs. Quebecor |
| Lundin Gold vs. Alamos Gold | Lundin Gold vs. First Quantum Minerals | Lundin Gold vs. Lundin Mining | Lundin Gold vs. Endeavour Mining Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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