Correlation Between Teleperformance and ID Logistics
Can any of the company-specific risk be diversified away by investing in both Teleperformance and ID Logistics 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 ID Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and ID Logistics Group, you can compare the effects of market volatilities on Teleperformance and ID Logistics 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 ID Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and ID Logistics.
Diversification Opportunities for Teleperformance and ID Logistics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Teleperformance and IDL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and ID Logistics Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ID Logistics Group 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 ID Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ID Logistics Group has no effect on the direction of Teleperformance i.e., Teleperformance and ID Logistics go up and down completely randomly.
Pair Corralation between Teleperformance and ID Logistics
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the ID Logistics. In addition to that, Teleperformance is 1.7 times more volatile than ID Logistics Group. It trades about -0.05 of its total potential returns per unit of risk. ID Logistics Group is currently generating about 0.05 per unit of volatility. If you would invest 33,000 in ID Logistics Group on August 28, 2024 and sell it today you would earn a total of 6,400 from holding ID Logistics Group or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.53% |
| Values | Daily Returns |
Teleperformance SE vs. ID Logistics Group
Performance |
| Timeline |
| Teleperformance SE |
| ID Logistics Group |
Teleperformance and ID Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and ID Logistics
The main advantage of trading using opposite Teleperformance and ID Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, ID Logistics 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 ID Logistics will offset losses from the drop in ID Logistics' long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| ID Logistics vs. Accor S A | ID Logistics vs. Publicis Groupe SA | ID Logistics vs. Legrand SA | ID Logistics vs. Pernod Ricard 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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