Correlation Between Amundi SA and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Amundi SA and Teleperformance 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 Amundi SA and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amundi SA and Teleperformance SE, you can compare the effects of market volatilities on Amundi SA and Teleperformance 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 Amundi SA with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amundi SA and Teleperformance.
Diversification Opportunities for Amundi SA and Teleperformance
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amundi and Teleperformance is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Amundi SA and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Amundi SA 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 Amundi SA are associated (or correlated) with Teleperformance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleperformance SE has no effect on the direction of Amundi SA i.e., Amundi SA and Teleperformance go up and down completely randomly.
Pair Corralation between Amundi SA and Teleperformance
Assuming the 90 days trading horizon Amundi SA is expected to generate 1.27 times more return on investment than Teleperformance. However, Amundi SA is 1.27 times more volatile than Teleperformance SE. It trades about -0.15 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.21 per unit of risk. If you would invest 6,650 in Amundi SA on September 1, 2024 and sell it today you would lose (485.00) from holding Amundi SA or give up 7.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Amundi SA vs. Teleperformance SE
Performance |
| Timeline |
| Amundi SA |
| Teleperformance SE |
Amundi SA and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amundi SA and Teleperformance
The main advantage of trading using opposite Amundi SA and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amundi SA position performs unexpectedly, Teleperformance 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 Teleperformance will offset losses from the drop in Teleperformance's long position.| Amundi SA vs. Teleperformance SE | Amundi SA vs. Eurofins Scientific SE | Amundi SA vs. Sartorius Stedim Biotech |
| Teleperformance vs. Accor S A | Teleperformance vs. Publicis Groupe SA | Teleperformance vs. Legrand SA | Teleperformance vs. Pernod Ricard SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |