Correlation Between Sangoma Technologies and TELUS International

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

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

Diversification Opportunities for Sangoma Technologies and TELUS International

0.53

Correlation Coefficient

Sangoma Technologies  TELUS International

Very weak diversification

The 3 months correlation between Sangoma and TELUS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sangoma Technologies Corp and TELUS International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELUS International and Sangoma Technologies 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 Sangoma Technologies Corp 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 Sangoma Technologies i.e., Sangoma Technologies and TELUS International go up and down completely randomly.

Pair Corralation between Sangoma Technologies and TELUS International

Assuming the 90 days trading horizon Sangoma Technologies is expected to generate 11.64 times less return on investment than TELUS International. But when comparing it to its historical volatility, Sangoma Technologies Corp is 2.25 times less risky than TELUS International. It trades about 0.04 of its potential returns per unit of risk. TELUS International is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  347.00  in TELUS International on April 24, 2025 and sell it today you would earn a total of  195.00  from holding TELUS International or generate 56.2% return on investment over 90 days.

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

Sangoma Technologies Corp  vs.  TELUS International

Sangoma Technologies Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sangoma Technologies Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Sangoma Technologies is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

TELUS International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TELUS International are ranked lower than 14 (%) 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.

Pair Trading with Sangoma Technologies and TELUS International

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

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..