Correlation Between Teleperformance and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Carlsberg 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 Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Carlsberg AS, you can compare the effects of market volatilities on Teleperformance and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Carlsberg.
Diversification Opportunities for Teleperformance and Carlsberg
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teleperformance and Carlsberg is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Teleperformance i.e., Teleperformance and Carlsberg go up and down completely randomly.
Pair Corralation between Teleperformance and Carlsberg
Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Carlsberg. But the pink sheet apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 2.48 times less risky than Carlsberg. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Carlsberg AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,085 in Carlsberg AS on September 13, 2024 and sell it today you would earn a total of 125.00 from holding Carlsberg AS or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. Carlsberg AS
Performance |
| Timeline |
| Teleperformance SE |
| Carlsberg AS |
Teleperformance and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Carlsberg
The main advantage of trading using opposite Teleperformance and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Teleperformance vs. Cintas | Teleperformance vs. Thomson Reuters Corp | Teleperformance vs. Global Payments | Teleperformance vs. RB Global |
| Carlsberg vs. Heineken NV | Carlsberg vs. Anheuser Busch Inbev | Carlsberg vs. Compania Cervecerias Unidas | Carlsberg vs. Boston Beer |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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