Correlation Between Teleperformance and Ekinops SA
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Ekinops 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 Ekinops 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 Ekinops SA, you can compare the effects of market volatilities on Teleperformance and Ekinops 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 Ekinops SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Ekinops SA.
Diversification Opportunities for Teleperformance and Ekinops SA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleperformance and Ekinops is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops 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 Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of Teleperformance i.e., Teleperformance and Ekinops SA go up and down completely randomly.
Pair Corralation between Teleperformance and Ekinops SA
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the Ekinops SA. In addition to that, Teleperformance is 1.08 times more volatile than Ekinops SA. It trades about -0.05 of its total potential returns per unit of risk. Ekinops SA is currently generating about -0.03 per unit of volatility. If you would invest 729.00 in Ekinops SA on August 28, 2024 and sell it today you would lose (339.00) from holding Ekinops SA or give up 46.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. Ekinops SA
Performance |
| Timeline |
| Teleperformance SE |
| Ekinops SA |
Teleperformance and Ekinops SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Ekinops SA
The main advantage of trading using opposite Teleperformance and Ekinops SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Ekinops 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 Ekinops SA will offset losses from the drop in Ekinops SA's long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| Ekinops SA vs. Claranova SE | Ekinops SA vs. Derichebourg | Ekinops SA vs. Mersen SA | Ekinops SA vs. BigBen Interactive |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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