Correlation Between Teleperformance and Intertek Group
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Intertek Group 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 Intertek Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Intertek Group Plc, you can compare the effects of market volatilities on Teleperformance and Intertek Group 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 Intertek Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Intertek Group.
Diversification Opportunities for Teleperformance and Intertek Group
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Teleperformance and Intertek is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Intertek Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intertek Group Plc 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 Intertek Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intertek Group Plc has no effect on the direction of Teleperformance i.e., Teleperformance and Intertek Group go up and down completely randomly.
Pair Corralation between Teleperformance and Intertek Group
Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Intertek Group. In addition to that, Teleperformance is 2.78 times more volatile than Intertek Group Plc. It trades about -0.04 of its total potential returns per unit of risk. Intertek Group Plc is currently generating about 0.05 per unit of volatility. If you would invest 4,829 in Intertek Group Plc on November 3, 2024 and sell it today you would earn a total of 1,704 from holding Intertek Group Plc or generate 35.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.7% |
| Values | Daily Returns |
Teleperformance SE vs. Intertek Group Plc
Performance |
| Timeline |
| Teleperformance SE |
| Intertek Group Plc |
Teleperformance and Intertek Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Intertek Group
The main advantage of trading using opposite Teleperformance and Intertek Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Intertek Group 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 Intertek Group will offset losses from the drop in Intertek Group's long position.| Teleperformance vs. Teleperformance PK | Teleperformance vs. SMC Corp | Teleperformance vs. Schindler Holding AG | Teleperformance vs. Straumann Holding AG |
| Intertek Group vs. Dexterra Group | Intertek Group vs. Wildpack Beverage | Intertek Group vs. DATA Communications Management | Intertek Group 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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