Correlation Between Teleperformance and Capgemini

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

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

Diversification Opportunities for Teleperformance and Capgemini

0.41

Correlation Coefficient

Teleperformance  Capgemini

Very weak diversification

The 3 months correlation between Teleperformance and Capgemini is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Capgemini SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE has no effect on the direction of Teleperformance i.e., Teleperformance and Capgemini go up and down completely randomly.

Pair Corralation between Teleperformance and Capgemini

Assuming the 90 days trading horizon Teleperformance is expected to generate 2.75 times less return on investment than Capgemini. In addition to that, Teleperformance is 1.6 times more volatile than Capgemini SE. It trades about 0.02 of its total potential returns per unit of risk. Capgemini SE is currently generating about 0.07 per unit of volatility. If you would invest  12,712  in Capgemini SE on April 25, 2025 and sell it today you would earn a total of  908.00  from holding Capgemini SE or generate 7.14% 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.  Capgemini SE

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.

Capgemini SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Capgemini SE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Capgemini may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Teleperformance and Capgemini

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

The idea behind Teleperformance SE and Capgemini 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.