Correlation Between Fastly and TELUS International

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

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

Diversification Opportunities for Fastly and TELUS International

0.81

Correlation Coefficient

Fastly  TELUS International

Very poor diversification

The 3 months correlation between Fastly and TELUS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Fastly Inc and TELUS International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS International and Fastly 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 Fastly Inc 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 Fastly i.e., Fastly and TELUS International go up and down completely randomly.

Pair Corralation between Fastly and TELUS International

Given the investment horizon of 90 days Fastly Inc is expected to generate 1.2 times more return on investment than TELUS International. However, Fastly is 1.2 times more volatile than TELUS International. It trades about 0.04 of its potential returns per unit of risk. TELUS International is currently generating about 0.03 per unit of risk. If you would invest  709.00  in Fastly Inc on July 31, 2025 and sell it today you would earn a total of  120.00  from holding Fastly Inc or generate 16.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Fastly Inc  vs.  TELUS International

Fastly Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Fastly Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady essential indicators, Fastly showed solid returns over the last few months and may actually be approaching a breakup point.

TELUS International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TELUS International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, TELUS International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fastly and TELUS International

The main advantage of trading using opposite Fastly and TELUS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fastly 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.

The idea behind Fastly Inc and TELUS International 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.