Correlation Between Teleperformance and Sopra Steria
Can any of the company-specific risk be diversified away by investing in both Teleperformance and Sopra Steria 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 Sopra Steria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Sopra Steria Group, you can compare the effects of market volatilities on Teleperformance and Sopra Steria 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 Sopra Steria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Sopra Steria.
Diversification Opportunities for Teleperformance and Sopra Steria
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleperformance and Sopra is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Sopra Steria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sopra Steria Group 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 Sopra Steria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sopra Steria Group has no effect on the direction of Teleperformance i.e., Teleperformance and Sopra Steria go up and down completely randomly.
Pair Corralation between Teleperformance and Sopra Steria
Assuming the 90 days trading horizon Teleperformance is expected to generate 355.71 times less return on investment than Sopra Steria. In addition to that, Teleperformance is 1.99 times more volatile than Sopra Steria Group. It trades about 0.0 of its total potential returns per unit of risk. Sopra Steria Group is currently generating about 0.18 per unit of volatility. If you would invest 16,879 in Sopra Steria Group on April 24, 2025 and sell it today you would earn a total of 2,741 from holding Sopra Steria Group or generate 16.24% 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. Sopra Steria Group
Performance |
Timeline |
Teleperformance SE |
Sopra Steria Group |
Teleperformance and Sopra Steria Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Teleperformance and Sopra Steria
The main advantage of trading using opposite Teleperformance and Sopra Steria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Sopra Steria 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 Sopra Steria will offset losses from the drop in Sopra Steria's long position.Teleperformance vs. Worldline SA | Teleperformance vs. Eurofins Scientific SE | Teleperformance vs. Sartorius Stedim Biotech | Teleperformance vs. Dassault Systemes SE |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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