Correlation Between CiT and Telos Corp

Can any of the company-specific risk be diversified away by investing in both CiT and Telos 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 CiT and Telos Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CiT Inc and Telos Corp, you can compare the effects of market volatilities on CiT and Telos 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 CiT with a short position of Telos Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CiT and Telos Corp.

Diversification Opportunities for CiT and Telos Corp

-0.45

Correlation Coefficient

CiT  Telos Corp

Very good diversification

The 3 months correlation between CiT and Telos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding CiT Inc and Telos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telos Corp and CiT 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 CiT Inc are associated (or correlated) with Telos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telos Corp has no effect on the direction of CiT i.e., CiT and Telos Corp go up and down completely randomly.

Pair Corralation between CiT and Telos Corp

Given the investment horizon of 90 days CiT Inc is expected to under-perform the Telos Corp. But the stock apears to be less risky and, when comparing its historical volatility, CiT Inc is 3.85 times less risky than Telos Corp. The stock trades about -0.1 of its potential returns per unit of risk. The Telos Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  266.00  in Telos Corp on May 17, 2025 and sell it today you would earn a total of  278.00  from holding Telos Corp or generate 104.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CiT Inc  vs.  Telos Corp

CiT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CiT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Telos Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Telos Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Telos Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CiT and Telos Corp

The main advantage of trading using opposite CiT and Telos Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CiT position performs unexpectedly, Telos 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 Telos Corp will offset losses from the drop in Telos Corp's long position.

The idea behind CiT Inc and Telos Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.