Correlation Between Remy Cointreau and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Remy 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 Remy Cointreau and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Remy Cointreau SA and Teleperformance SE, you can compare the effects of market volatilities on Remy 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 Remy Cointreau with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Remy Cointreau and Teleperformance.
Diversification Opportunities for Remy Cointreau and Teleperformance
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Remy and Teleperformance is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Remy 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 Remy 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 Remy 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 Remy Cointreau i.e., Remy Cointreau and Teleperformance go up and down completely randomly.
Pair Corralation between Remy Cointreau and Teleperformance
Assuming the 90 days horizon Remy Cointreau SA is expected to under-perform the Teleperformance. In addition to that, Remy Cointreau is 1.04 times more volatile than Teleperformance SE. It trades about -0.1 of its total potential returns per unit of risk. Teleperformance SE is currently generating about -0.03 per unit of volatility. If you would invest 10,873 in Teleperformance SE on November 2, 2024 and sell it today you would lose (1,243) from holding Teleperformance SE or give up 11.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Remy Cointreau SA vs. Teleperformance SE
Performance |
| Timeline |
| Remy Cointreau SA |
| Teleperformance SE |
Remy Cointreau and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Remy Cointreau and Teleperformance
The main advantage of trading using opposite Remy Cointreau and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Remy 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.| Remy Cointreau vs. Diageo PLC ADR | Remy Cointreau vs. Pernod Ricard SA | Remy Cointreau vs. Treasury Wine Estates | Remy Cointreau vs. MGP Ingredients |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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