Correlation Between Dexterra and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Dexterra 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 Dexterra and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dexterra Group and Teleperformance SE, you can compare the effects of market volatilities on Dexterra 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 Dexterra with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dexterra and Teleperformance.
Diversification Opportunities for Dexterra and Teleperformance
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dexterra and Teleperformance is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Dexterra Group and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Dexterra 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 Dexterra Group 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 Dexterra i.e., Dexterra and Teleperformance go up and down completely randomly.
Pair Corralation between Dexterra and Teleperformance
Assuming the 90 days horizon Dexterra is expected to generate 9.95 times less return on investment than Teleperformance. But when comparing it to its historical volatility, Dexterra Group is 1.4 times less risky than Teleperformance. It trades about 0.03 of its potential returns per unit of risk. Teleperformance SE is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8,501 in Teleperformance SE on November 3, 2024 and sell it today you would earn a total of 939.00 from holding Teleperformance SE or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dexterra Group vs. Teleperformance SE
Performance |
| Timeline |
| Dexterra Group |
| Teleperformance SE |
Dexterra and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dexterra and Teleperformance
The main advantage of trading using opposite Dexterra and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dexterra 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.| Dexterra vs. Intertek Group Plc | Dexterra vs. Wildpack Beverage | Dexterra vs. DATA Communications Management | Dexterra vs. Mitie Group Plc |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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