Correlation Between Gilat Satellite and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Gilat Satellite 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 Gilat Satellite and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gilat Satellite Networks and Teleperformance SE, you can compare the effects of market volatilities on Gilat Satellite 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 Gilat Satellite with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gilat Satellite and Teleperformance.
Diversification Opportunities for Gilat Satellite and Teleperformance
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gilat and Teleperformance is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gilat Satellite Networks and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Gilat Satellite 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 Gilat Satellite Networks 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 Gilat Satellite i.e., Gilat Satellite and Teleperformance go up and down completely randomly.
Pair Corralation between Gilat Satellite and Teleperformance
Given the investment horizon of 90 days Gilat Satellite Networks is expected to generate 0.64 times more return on investment than Teleperformance. However, Gilat Satellite Networks is 1.56 times less risky than Teleperformance. It trades about 0.05 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.03 per unit of risk. If you would invest 577.00 in Gilat Satellite Networks on November 9, 2024 and sell it today you would earn a total of 176.00 from holding Gilat Satellite Networks or generate 30.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 65.17% |
| Values | Daily Returns |
Gilat Satellite Networks vs. Teleperformance SE
Performance |
| Timeline |
| Gilat Satellite Networks |
| Teleperformance SE |
Gilat Satellite and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gilat Satellite and Teleperformance
The main advantage of trading using opposite Gilat Satellite and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gilat Satellite 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.| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
| Teleperformance vs. Teleperformance PK | Teleperformance vs. SMC Corp | Teleperformance vs. Schindler Holding AG | Teleperformance vs. Straumann Holding AG |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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