Correlation Between Thermador Groupe and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Thermador Groupe and Teleperformance 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 Thermador Groupe and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermador Groupe SA and Teleperformance SE, you can compare the effects of market volatilities on Thermador Groupe and Teleperformance 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 Thermador Groupe with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermador Groupe and Teleperformance.
Diversification Opportunities for Thermador Groupe and Teleperformance
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Thermador and Teleperformance is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Thermador Groupe SA and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Thermador Groupe 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 Thermador Groupe SA are associated (or correlated) with Teleperformance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleperformance SE has no effect on the direction of Thermador Groupe i.e., Thermador Groupe and Teleperformance go up and down completely randomly.
Pair Corralation between Thermador Groupe and Teleperformance
Assuming the 90 days trading horizon Thermador Groupe SA is expected to generate 1.2 times more return on investment than Teleperformance. However, Thermador Groupe is 1.2 times more volatile than Teleperformance SE. It trades about -0.09 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.25 per unit of risk. If you would invest 7,320 in Thermador Groupe SA on August 28, 2024 and sell it today you would lose (310.00) from holding Thermador Groupe SA or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thermador Groupe SA vs. Teleperformance SE
Performance |
| Timeline |
| Thermador Groupe |
| Teleperformance SE |
Thermador Groupe and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thermador Groupe and Teleperformance
The main advantage of trading using opposite Thermador Groupe and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermador Groupe position performs unexpectedly, Teleperformance 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 Teleperformance will offset losses from the drop in Teleperformance's long position.| Thermador Groupe vs. Stef SA | Thermador Groupe vs. Robertet SA | Thermador Groupe vs. Grard Perrier Industrie | Thermador Groupe vs. Aubay Socit Anonyme |
| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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