Correlation Between Teleperformance and White Fox

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

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

Diversification Opportunities for Teleperformance and White Fox

-0.3

Correlation Coefficient

Teleperformance  White Fox

Very good diversification

The 3 months correlation between Teleperformance and White is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and White Fox Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Fox Ventures 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 White Fox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Fox Ventures has no effect on the direction of Teleperformance i.e., Teleperformance and White Fox go up and down completely randomly.

Pair Corralation between Teleperformance and White Fox

Assuming the 90 days horizon Teleperformance SE is expected to under-perform the White Fox. But the pink sheet apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 15.57 times less risky than White Fox. The pink sheet trades about -0.11 of its potential returns per unit of risk. The White Fox Ventures is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  0.25  in White Fox Ventures on September 30, 2024 and sell it today you would earn a total of  0.00  from holding White Fox Ventures or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Teleperformance SE  vs.  White Fox Ventures

Teleperformance SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teleperformance SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

White Fox Ventures

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in White Fox Ventures are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, White Fox showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleperformance and White Fox

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

The idea behind Teleperformance SE and White Fox Ventures 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.