Correlation Between Worldline and Teleperformance
Can any of the company-specific risk be diversified away by investing in both Worldline and Teleperformance 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 Worldline and Teleperformance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worldline SA and Teleperformance SE, you can compare the effects of market volatilities on Worldline and Teleperformance 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 Worldline with a short position of Teleperformance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worldline and Teleperformance.
Diversification Opportunities for Worldline and Teleperformance
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Worldline and Teleperformance is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Worldline SA and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Worldline 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 Worldline SA are associated (or correlated) with Teleperformance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleperformance SE has no effect on the direction of Worldline i.e., Worldline and Teleperformance go up and down completely randomly.
Pair Corralation between Worldline and Teleperformance
Assuming the 90 days trading horizon Worldline SA is expected to generate 1.21 times more return on investment than Teleperformance. However, Worldline is 1.21 times more volatile than Teleperformance SE. It trades about -0.02 of its potential returns per unit of risk. Teleperformance SE is currently generating about -0.04 per unit of risk. If you would invest 1,170 in Worldline SA on November 3, 2024 and sell it today you would lose (318.00) from holding Worldline SA or give up 27.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worldline SA vs. Teleperformance SE
Performance |
| Timeline |
| Worldline SA |
| Teleperformance SE |
Worldline and Teleperformance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worldline and Teleperformance
The main advantage of trading using opposite Worldline and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worldline position performs unexpectedly, Teleperformance 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 Teleperformance will offset losses from the drop in Teleperformance's long position.| Worldline vs. Atos SE | Worldline vs. Teleperformance SE | Worldline vs. Dassault Systemes SE | Worldline vs. Capgemini SE |
| Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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