Correlation Between IBEX and Telos Corp

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

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

Diversification Opportunities for IBEX and Telos Corp

0.65

Correlation Coefficient

IBEX  Telos Corp

Poor diversification

The 3 months correlation between IBEX and Telos is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding IBEX and Telos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telos Corp and IBEX 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 IBEX 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 IBEX i.e., IBEX and Telos Corp go up and down completely randomly.

Pair Corralation between IBEX and Telos Corp

Given the investment horizon of 90 days IBEX is expected to under-perform the Telos Corp. But the stock apears to be less risky and, when comparing its historical volatility, IBEX is 1.71 times less risky than Telos Corp. The stock trades about -0.14 of its potential returns per unit of risk. The Telos Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  691.00  in Telos Corp on July 28, 2025 and sell it today you would earn a total of  50.00  from holding Telos Corp or generate 7.24% return on investment over 90 days.

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

IBEX  vs.  Telos Corp

IBEX

Risk-Adjusted Performance

Fair

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

Telos Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Telos Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady essential indicators, Telos Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IBEX and Telos Corp

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

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.