Correlation Between Teleperformance and Rubis SCA
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Rubis SCA 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 Rubis SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Rubis SCA, you can compare the effects of market volatilities on Teleperformance and Rubis SCA 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 Rubis SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Rubis SCA.
Diversification Opportunities for Teleperformance and Rubis SCA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Teleperformance and Rubis is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Rubis SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubis SCA 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 Rubis SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubis SCA has no effect on the direction of Teleperformance i.e., Teleperformance and Rubis SCA go up and down completely randomly.
Pair Corralation between Teleperformance and Rubis SCA
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the Rubis SCA. In addition to that, Teleperformance is 1.63 times more volatile than Rubis SCA. It trades about -0.04 of its total potential returns per unit of risk. Rubis SCA is currently generating about 0.02 per unit of volatility. If you would invest 1,983 in Rubis SCA on August 24, 2024 and sell it today you would earn a total of 287.00 from holding Rubis SCA or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. Rubis SCA
Performance |
| Timeline |
| Teleperformance SE |
| Rubis SCA |
Teleperformance and Rubis SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Rubis SCA
The main advantage of trading using opposite Teleperformance and Rubis SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Rubis SCA 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 Rubis SCA will offset losses from the drop in Rubis SCA's long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| Rubis SCA vs. Gaztransport Technigaz SAS | Rubis SCA vs. Nexity | Rubis SCA vs. SCOR SE | Rubis SCA vs. TotalEnergies SE |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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