Correlation Between Telus Corp and Imax Corp
Can any of the company-specific risk be diversified away by investing in both Telus Corp and Imax 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 Telus Corp and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Telus Corp and Imax Corp, you can compare the effects of market volatilities on Telus Corp and Imax 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 Telus Corp with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telus Corp and Imax Corp.
Diversification Opportunities for Telus Corp and Imax Corp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Telus and Imax is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Telus Corp and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp 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 Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of Telus Corp i.e., Telus Corp and Imax Corp go up and down completely randomly.
Pair Corralation between Telus Corp and Imax Corp
Allowing for the 90-day total investment horizon Telus Corp is expected to generate 3.09 times less return on investment than Imax Corp. But when comparing it to its historical volatility, Telus Corp is 2.43 times less risky than Imax Corp. It trades about 0.06 of its potential returns per unit of risk. Imax Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,703 in Imax Corp on June 7, 2025 and sell it today you would earn a total of 220.00 from holding Imax Corp or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telus Corp vs. Imax Corp
Performance |
| Timeline |
| Telus Corp |
| Imax Corp |
Telus Corp and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telus Corp and Imax Corp
The main advantage of trading using opposite Telus Corp and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telus Corp position performs unexpectedly, Imax 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 Imax Corp will offset losses from the drop in Imax Corp's long position.| Telus Corp vs. BCE Inc | Telus Corp vs. Rogers Communications | Telus Corp vs. America Movil SAB | Telus Corp vs. Fortis Inc |
| Imax Corp vs. Cinemark Holdings | Imax Corp vs. News Corp A | Imax Corp vs. Marcus | Imax Corp vs. Liberty Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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