Correlation Between Rmy Cointreau and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Rmy Cointreau 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 Rmy Cointreau and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rmy Cointreau SA and Teleperformance SE, you can compare the effects of market volatilities on Rmy Cointreau 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 Rmy Cointreau with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rmy Cointreau and Teleperformance.
Diversification Opportunities for Rmy Cointreau and Teleperformance
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rmy and Teleperformance is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Rmy Cointreau SA and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Rmy Cointreau 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 Rmy Cointreau 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 Rmy Cointreau i.e., Rmy Cointreau and Teleperformance go up and down completely randomly.
Pair Corralation between Rmy Cointreau and Teleperformance
Assuming the 90 days horizon Rmy Cointreau SA is expected to under-perform the Teleperformance. But the pink sheet apears to be less risky and, when comparing its historical volatility, Rmy Cointreau SA is 1.08 times less risky than Teleperformance. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Teleperformance SE is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 10,533 in Teleperformance SE on September 14, 2024 and sell it today you would lose (1,771) from holding Teleperformance SE or give up 16.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Rmy Cointreau SA vs. Teleperformance SE
Performance |
| Timeline |
| Rmy Cointreau SA |
| Teleperformance SE |
Rmy Cointreau and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rmy Cointreau and Teleperformance
The main advantage of trading using opposite Rmy Cointreau and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rmy Cointreau 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.| Rmy Cointreau vs. Remy Cointreau SA | Rmy Cointreau vs. Pernod Ricard SA | Rmy Cointreau vs. Carlsberg AS | Rmy Cointreau vs. Heineken Holding NV |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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