Correlation Between Teleperformance and Ijj

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Can any of the company-specific risk be diversified away by investing in both Teleperformance and Ijj 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 Ijj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleperformance SE and Ijj Corporation, you can compare the effects of market volatilities on Teleperformance and Ijj 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 Ijj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Ijj.

Diversification Opportunities for Teleperformance and Ijj

-0.36
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Teleperformance and Ijj

Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Ijj. But the pink sheet apears to be less risky and, when comparing its historical volatility, Teleperformance SE is 6.76 times less risky than Ijj. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Ijj Corporation is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  0.04  in Ijj Corporation on August 31, 2024 and sell it today you would earn a total of  0.01  from holding Ijj Corporation or generate 25.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Teleperformance SE  vs.  Ijj Corp.

 Performance 
       Timeline  
Teleperformance SE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Teleperformance SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Ijj Corporation 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Ijj Corporation are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward-looking indicators, Ijj reported solid returns over the last few months and may actually be approaching a breakup point.

Teleperformance and Ijj Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teleperformance and Ijj

The main advantage of trading using opposite Teleperformance and Ijj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Ijj 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 Ijj will offset losses from the drop in Ijj's long position.
The idea behind Teleperformance SE and Ijj Corporation 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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