Correlation Between Straumann Holding and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Straumann Holding 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 Straumann Holding and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and Teleperformance SE, you can compare the effects of market volatilities on Straumann Holding 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 Straumann Holding with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and Teleperformance.
Diversification Opportunities for Straumann Holding and Teleperformance
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Straumann and Teleperformance is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Straumann Holding 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 Straumann Holding AG 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 Straumann Holding i.e., Straumann Holding and Teleperformance go up and down completely randomly.
Pair Corralation between Straumann Holding and Teleperformance
Assuming the 90 days horizon Straumann Holding AG is expected to generate 1.22 times more return on investment than Teleperformance. However, Straumann Holding is 1.22 times more volatile than Teleperformance SE. It trades about 0.01 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.04 per unit of risk. If you would invest 15,259 in Straumann Holding AG on November 3, 2024 and sell it today you would lose (1,142) from holding Straumann Holding AG or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.71% |
| Values | Daily Returns |
Straumann Holding AG vs. Teleperformance SE
Performance |
| Timeline |
| Straumann Holding |
| Teleperformance SE |
Straumann Holding and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and Teleperformance
The main advantage of trading using opposite Straumann Holding and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding 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.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Straumann Holding AG | Straumann Holding vs. Coloplast AS | Straumann Holding vs. Essilor International SA |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |