TELUS Free Cash Flow Per Share vs Free Cash Flow Yield Analysis
Pair Trading with TELUS International
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if TELUS International position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with TELUS Stock
Moving against TELUS Stock
| 0.8 | TRP | TC Energy Corp | PairCorr |
| 0.63 | ENB | Enbridge | PairCorr |
| 0.62 | MFC | Manulife Financial Corp Earnings Call This Week | PairCorr |
| 0.47 | DFN-PA | Dividend 15 Split | PairCorr |
The ability to find closely correlated positions to TELUS International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace TELUS International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back TELUS International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling TELUS International to buy it.
The correlation of TELUS International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as TELUS International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if TELUS International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for TELUS International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out World Market Map to better understand how to build diversified portfolios, which includes a position in TELUS International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in TELUS Stock, please use our How to Invest in TELUS International guide.You can also try the AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.