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 PK, 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
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dexterra and Teleperformance is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Dexterra Group and Teleperformance PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance PK 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 PK 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 Group is expected to generate 0.87 times more return on investment than Teleperformance. However, Dexterra Group is 1.14 times less risky than Teleperformance. It trades about 0.07 of its potential returns per unit of risk. Teleperformance PK is currently generating about -0.04 per unit of risk. If you would invest 396.00 in Dexterra Group on November 3, 2024 and sell it today you would earn a total of 161.00 from holding Dexterra Group or generate 40.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.66% |
| Values | Daily Returns |
Dexterra Group vs. Teleperformance PK
Performance |
| Timeline |
| Dexterra Group |
| Teleperformance PK |
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. Dexterra Group | Teleperformance vs. Intertek Group Plc | Teleperformance vs. Wildpack Beverage | Teleperformance vs. DATA Communications Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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