Correlation Between Teleperformance and Maximus
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Maximus 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 Maximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Maximus, you can compare the effects of market volatilities on Teleperformance and Maximus 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 Maximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Maximus.
Diversification Opportunities for Teleperformance and Maximus
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teleperformance and Maximus is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus 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 Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of Teleperformance i.e., Teleperformance and Maximus go up and down completely randomly.
Pair Corralation between Teleperformance and Maximus
Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Maximus. In addition to that, Teleperformance is 2.56 times more volatile than Maximus. It trades about -0.04 of its total potential returns per unit of risk. Maximus is currently generating about 0.01 per unit of volatility. If you would invest 7,050 in Maximus on September 3, 2024 and sell it today you would earn a total of 400.00 from holding Maximus or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.05% |
| Values | Daily Returns |
Teleperformance SE vs. Maximus
Performance |
| Timeline |
| Teleperformance SE |
| Maximus |
Teleperformance and Maximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Maximus
The main advantage of trading using opposite Teleperformance and Maximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Maximus 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 Maximus will offset losses from the drop in Maximus' long position.| Teleperformance vs. Cintas | Teleperformance vs. Thomson Reuters Corp | Teleperformance vs. Global Payments | Teleperformance vs. RB Global |
| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo Corp |
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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