Correlation Between Teleperformance and CBIZ
Can any of the company-specific risk be diversified away by investing in both Teleperformance and CBIZ 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 CBIZ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and CBIZ Inc, you can compare the effects of market volatilities on Teleperformance and CBIZ 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 CBIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and CBIZ.
Diversification Opportunities for Teleperformance and CBIZ
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleperformance and CBIZ is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and CBIZ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBIZ Inc 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 CBIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBIZ Inc has no effect on the direction of Teleperformance i.e., Teleperformance and CBIZ go up and down completely randomly.
Pair Corralation between Teleperformance and CBIZ
Assuming the 90 days horizon Teleperformance SE is expected to under-perform the CBIZ. In addition to that, Teleperformance is 1.37 times more volatile than CBIZ Inc. It trades about -0.28 of its total potential returns per unit of risk. CBIZ Inc is currently generating about 0.47 per unit of volatility. If you would invest 6,893 in CBIZ Inc on September 1, 2024 and sell it today you would earn a total of 1,365 from holding CBIZ Inc or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. CBIZ Inc
Performance |
| Timeline |
| Teleperformance SE |
| CBIZ Inc |
Teleperformance and CBIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and CBIZ
The main advantage of trading using opposite Teleperformance and CBIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, CBIZ 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 CBIZ will offset losses from the drop in CBIZ's long position.| Teleperformance vs. Teleperformance PK | Teleperformance vs. SMC Corp | Teleperformance vs. Schindler Holding AG | Teleperformance vs. Straumann Holding AG |
| CBIZ vs. CRA International | CBIZ vs. Huron Consulting Group | CBIZ vs. Franklin Covey | CBIZ vs. ICF International |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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