Correlation Between Teleperformance and Bureau Veritas
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Bureau Veritas 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 Bureau Veritas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Bureau Veritas SA, you can compare the effects of market volatilities on Teleperformance and Bureau Veritas 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 Bureau Veritas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Bureau Veritas.
Diversification Opportunities for Teleperformance and Bureau Veritas
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teleperformance and Bureau is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Bureau Veritas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bureau Veritas 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 Bureau Veritas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bureau Veritas SA has no effect on the direction of Teleperformance i.e., Teleperformance and Bureau Veritas go up and down completely randomly.
Pair Corralation between Teleperformance and Bureau Veritas
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the Bureau Veritas. In addition to that, Teleperformance is 1.41 times more volatile than Bureau Veritas SA. It trades about -0.2 of its total potential returns per unit of risk. Bureau Veritas SA is currently generating about -0.11 per unit of volatility. If you would invest 2,912 in Bureau Veritas SA on August 25, 2024 and sell it today you would lose (82.00) from holding Bureau Veritas SA or give up 2.82% 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. Bureau Veritas SA
Performance |
| Timeline |
| Teleperformance SE |
| Bureau Veritas SA |
Teleperformance and Bureau Veritas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Bureau Veritas
The main advantage of trading using opposite Teleperformance and Bureau Veritas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Bureau Veritas 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 Bureau Veritas will offset losses from the drop in Bureau Veritas' long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| Bureau Veritas vs. Prodways Group SA | Bureau Veritas vs. Claranova SE | Bureau Veritas vs. DBV Technologies SA | Bureau Veritas vs. Manitou BF SA |
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.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |