Correlation Between Rubis SCA and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Rubis SCA 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 Rubis SCA and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubis SCA and Teleperformance SE, you can compare the effects of market volatilities on Rubis SCA 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 Rubis SCA with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubis SCA and Teleperformance.
Diversification Opportunities for Rubis SCA and Teleperformance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rubis and Teleperformance is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Rubis SCA and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Rubis SCA 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 Rubis SCA 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 Rubis SCA i.e., Rubis SCA and Teleperformance go up and down completely randomly.
Pair Corralation between Rubis SCA and Teleperformance
Assuming the 90 days trading horizon Rubis SCA is expected to generate 0.7 times more return on investment than Teleperformance. However, Rubis SCA is 1.44 times less risky than Teleperformance. It trades about 0.03 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.05 per unit of risk. If you would invest 2,077 in Rubis SCA on August 28, 2024 and sell it today you would earn a total of 237.00 from holding Rubis SCA or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.53% |
| Values | Daily Returns |
Rubis SCA vs. Teleperformance SE
Performance |
| Timeline |
| Rubis SCA |
| Teleperformance SE |
Rubis SCA and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubis SCA and Teleperformance
The main advantage of trading using opposite Rubis SCA and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubis SCA 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.| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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