Correlation Between Teleperformance and BYD

Can any of the company-specific risk be diversified away by investing in both Teleperformance and BYD 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 BYD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Teleperformance SE and BYD Co, you can compare the effects of market volatilities on Teleperformance and BYD 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 BYD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and BYD.

Diversification Opportunities for Teleperformance and BYD

-0.36

Correlation Coefficient

Teleperformance  BYD

Very good diversification

The 3 months correlation between Teleperformance and BYD is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and BYD Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Co 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 BYD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Co has no effect on the direction of Teleperformance i.e., Teleperformance and BYD go up and down completely randomly.

Pair Corralation between Teleperformance and BYD

Assuming the 90 days trading horizon Teleperformance is expected to generate 81.27 times less return on investment than BYD. But when comparing it to its historical volatility, Teleperformance SE is 12.51 times less risky than BYD. It trades about 0.02 of its potential returns per unit of risk. BYD Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,138  in BYD Co on April 22, 2025 and sell it today you would earn a total of  2,422  from holding BYD Co or generate 212.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Teleperformance SE  vs.  BYD Co

Teleperformance SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Teleperformance SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Teleperformance is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

BYD Co

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BYD Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, BYD unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleperformance and BYD

The main advantage of trading using opposite Teleperformance and BYD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, BYD 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 BYD will offset losses from the drop in BYD's long position.

The idea behind Teleperformance SE and BYD Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.