Correlation Between PFMT Old and Teleperformance
Can any of the company-specific risk be diversified away by investing in both PFMT Old 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 PFMT Old and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFMT Old and Teleperformance SE, you can compare the effects of market volatilities on PFMT Old 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 PFMT Old with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFMT Old and Teleperformance.
Diversification Opportunities for PFMT Old and Teleperformance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PFMT and Teleperformance is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PFMT Old and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and PFMT Old 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 PFMT Old 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 PFMT Old i.e., PFMT Old and Teleperformance go up and down completely randomly.
Pair Corralation between PFMT Old and Teleperformance
If you would invest 8,501 in Teleperformance SE on November 1, 2024 and sell it today you would earn a total of 1,146 from holding Teleperformance SE or generate 13.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
PFMT Old vs. Teleperformance SE
Performance |
| Timeline |
| PFMT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Teleperformance SE |
PFMT Old and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFMT Old and Teleperformance
The main advantage of trading using opposite PFMT Old and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFMT Old 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.| PFMT Old vs. Network 1 Technologies | PFMT Old vs. Rentokil Initial PLC | PFMT Old vs. Mader Group Limited | PFMT Old vs. First Advantage 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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