Correlation Between Teleperformance and Groupe Sfpi
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Groupe Sfpi 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 Groupe Sfpi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Groupe Sfpi, you can compare the effects of market volatilities on Teleperformance and Groupe Sfpi 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 Groupe Sfpi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Groupe Sfpi.
Diversification Opportunities for Teleperformance and Groupe Sfpi
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teleperformance and Groupe is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Groupe Sfpi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe Sfpi 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 Groupe Sfpi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe Sfpi has no effect on the direction of Teleperformance i.e., Teleperformance and Groupe Sfpi go up and down completely randomly.
Pair Corralation between Teleperformance and Groupe Sfpi
Assuming the 90 days trading horizon Teleperformance SE is expected to under-perform the Groupe Sfpi. But the stock apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 1.19 times less risky than Groupe Sfpi. The stock trades about -0.19 of its potential returns per unit of risk. The Groupe Sfpi is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 205.00 in Groupe Sfpi on August 26, 2024 and sell it today you would lose (5.00) from holding Groupe Sfpi or give up 2.44% 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. Groupe Sfpi
Performance |
| Timeline |
| Teleperformance SE |
| Groupe Sfpi |
Teleperformance and Groupe Sfpi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Groupe Sfpi
The main advantage of trading using opposite Teleperformance and Groupe Sfpi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Groupe Sfpi 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 Groupe Sfpi will offset losses from the drop in Groupe Sfpi's long position.| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
| Groupe Sfpi vs. Groupe Guillin SA | Groupe Sfpi vs. Stef SA | Groupe Sfpi vs. SA Catana Group | Groupe Sfpi vs. Jacquet Metal Service |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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