Correlation Between Teleperformance and Dexterra
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Dexterra 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 Dexterra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Dexterra Group, you can compare the effects of market volatilities on Teleperformance and Dexterra 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 Dexterra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Dexterra.
Diversification Opportunities for Teleperformance and Dexterra
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teleperformance and Dexterra is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Dexterra Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dexterra Group 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 Dexterra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dexterra Group has no effect on the direction of Teleperformance i.e., Teleperformance and Dexterra go up and down completely randomly.
Pair Corralation between Teleperformance and Dexterra
Assuming the 90 days horizon Teleperformance SE is expected to generate 1.4 times more return on investment than Dexterra. However, Teleperformance is 1.4 times more volatile than Dexterra Group. It trades about 0.22 of its potential returns per unit of risk. Dexterra Group is currently generating about 0.03 per unit of risk. If you would invest 8,501 in Teleperformance SE on November 3, 2024 and sell it today you would earn a total of 939.00 from holding Teleperformance SE or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Teleperformance SE vs. Dexterra Group
Performance |
| Timeline |
| Teleperformance SE |
| Dexterra Group |
Teleperformance and Dexterra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Dexterra
The main advantage of trading using opposite Teleperformance and Dexterra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Dexterra 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 Dexterra will offset losses from the drop in Dexterra's long position.| Teleperformance vs. Teleperformance PK | Teleperformance vs. SMC Corp | Teleperformance vs. Schindler Holding AG | Teleperformance vs. Straumann Holding AG |
| Dexterra vs. Intertek Group Plc | Dexterra vs. Wildpack Beverage | Dexterra vs. DATA Communications Management | Dexterra vs. Mitie Group Plc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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