Correlation Between TELUS International and Synopsys

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

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

Diversification Opportunities for TELUS International and Synopsys

-0.83

Correlation Coefficient

TELUS International  Synopsys

Pay attention - limited upside

The 3 months correlation between TELUS and Synopsys is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding TELUS International and Synopsys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synopsys and TELUS International 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 International are associated (or correlated) with Synopsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synopsys has no effect on the direction of TELUS International i.e., TELUS International and Synopsys go up and down completely randomly.

Pair Corralation between TELUS International and Synopsys

Assuming the 90 days trading horizon TELUS International is expected to generate 0.3 times more return on investment than Synopsys. However, TELUS International is 3.32 times less risky than Synopsys. It trades about -0.15 of its potential returns per unit of risk. Synopsys is currently generating about -0.13 per unit of risk. If you would invest  621.00  in TELUS International on August 1, 2025 and sell it today you would lose (15.00) from holding TELUS International or give up 2.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

TELUS International  vs.  Synopsys

TELUS International

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TELUS International are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TELUS International displayed solid returns over the last few months and may actually be approaching a breakup point.

Synopsys

Risk-Adjusted Performance

Weakest

Over the last 90 days Synopsys 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 November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with TELUS International and Synopsys

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

The idea behind TELUS International and Synopsys 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.