Correlation Between Teleperformance and Alten SA
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Alten SA 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 Teleperformance and Alten SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Alten SA, you can compare the effects of market volatilities on Teleperformance and Alten SA 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 Teleperformance with a short position of Alten SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Alten SA.
Diversification Opportunities for Teleperformance and Alten SA
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teleperformance and Alten is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Alten SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alten SA and Teleperformance 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 Teleperformance SE are associated (or correlated) with Alten SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alten SA has no effect on the direction of Teleperformance i.e., Teleperformance and Alten SA go up and down completely randomly.
Pair Corralation between Teleperformance and Alten SA
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the Alten SA. But the stock apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 1.04 times less risky than Alten SA. The stock trades about -0.23 of its potential returns per unit of risk. The Alten SA is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 8,135 in Alten SA on August 28, 2024 and sell it today you would lose (155.00) from holding Alten SA or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. Alten SA
Performance |
| Timeline |
| Teleperformance SE |
| Alten SA |
Teleperformance and Alten SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Alten SA
The main advantage of trading using opposite Teleperformance and Alten SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Alten SA 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 Alten SA will offset losses from the drop in Alten SA's long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| Alten SA vs. Neurones | Alten SA vs. Manitou BF SA | Alten SA vs. Ossiam Minimum Variance | Alten SA vs. Granite 3x LVMH |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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