Correlation Between Teleperformance and Proactis

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

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

Diversification Opportunities for Teleperformance and Proactis

-0.36

Correlation Coefficient

Teleperformance  Proactis

Very good diversification

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

Pair Corralation between Teleperformance and Proactis

Assuming the 90 days trading horizon Teleperformance is expected to generate 84.29 times less return on investment than Proactis. But when comparing it to its historical volatility, Teleperformance SE is 1.74 times less risky than Proactis. It trades about 0.0 of its potential returns per unit of risk. Proactis SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6.50  in Proactis SA on April 24, 2025 and sell it today you would lose (0.25) from holding Proactis SA or give up 3.85% of portfolio value over 90 days.

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

Teleperformance SE  vs.  Proactis SA

Teleperformance SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Teleperformance SE has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Proactis SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Proactis SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Proactis is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Teleperformance and Proactis

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

The idea behind Teleperformance SE and Proactis SA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.