Correlation Between Altareit and Teleperformance

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

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

Diversification Opportunities for Altareit and Teleperformance

-0.38

Correlation Coefficient

Altareit  Teleperformance

Very good diversification

The 3 months correlation between Altareit and Teleperformance is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Altareit and Teleperformance SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleperformance SE and Altareit 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 Altareit 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 Altareit i.e., Altareit and Teleperformance go up and down completely randomly.

Pair Corralation between Altareit and Teleperformance

Assuming the 90 days trading horizon Altareit is expected to generate 0.13 times more return on investment than Teleperformance. However, Altareit is 7.45 times less risky than Teleperformance. It trades about 0.23 of its potential returns per unit of risk. Teleperformance SE is currently generating about 0.02 per unit of risk. If you would invest  48,730  in Altareit on April 25, 2025 and sell it today you would earn a total of  2,770  from holding Altareit or generate 5.68% return on investment over 90 days.

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

Altareit  vs.  Teleperformance SE

Altareit

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Altareit are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Altareit is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

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. Despite somewhat strong basic indicators, Teleperformance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Altareit and Teleperformance

The main advantage of trading using opposite Altareit and Teleperformance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altareit 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.

The idea behind Altareit and Teleperformance SE 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.