Correlation Between Teleperformance and Remy Cointreau
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Remy Cointreau 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 Remy Cointreau into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Remy Cointreau SA, you can compare the effects of market volatilities on Teleperformance and Remy Cointreau 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 Remy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Remy Cointreau.
Diversification Opportunities for Teleperformance and Remy Cointreau
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teleperformance and Remy is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Remy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Remy Cointreau SA 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 Remy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Remy Cointreau SA has no effect on the direction of Teleperformance i.e., Teleperformance and Remy Cointreau go up and down completely randomly.
Pair Corralation between Teleperformance and Remy Cointreau
Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Remy Cointreau. But the pink sheet apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 1.16 times less risky than Remy Cointreau. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Remy Cointreau SA is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 576.00 in Remy Cointreau SA on September 13, 2024 and sell it today you would earn a total of 87.00 from holding Remy Cointreau SA or generate 15.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleperformance SE vs. Remy Cointreau SA
Performance |
| Timeline |
| Teleperformance SE |
| Remy Cointreau SA |
Teleperformance and Remy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleperformance and Remy Cointreau
The main advantage of trading using opposite Teleperformance and Remy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Remy Cointreau 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 Remy Cointreau will offset losses from the drop in Remy Cointreau's long position.| Teleperformance vs. Cintas | Teleperformance vs. Thomson Reuters Corp | Teleperformance vs. Global Payments | Teleperformance vs. RB Global |
| Remy Cointreau vs. Andrew Peller Limited | Remy Cointreau vs. Aristocrat Group Corp | Remy Cointreau vs. Iconic Brands | Remy Cointreau vs. Naked Wines 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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