Correlation Between Teleperformance and RB Global

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

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

Diversification Opportunities for Teleperformance and RB Global

-0.68

Correlation Coefficient

Teleperformance  RB Global

Excellent diversification

The 3 months correlation between Teleperformance and RBA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and RB Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RB Global 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 RB Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RB Global has no effect on the direction of Teleperformance i.e., Teleperformance and RB Global go up and down completely randomly.

Pair Corralation between Teleperformance and RB Global

Assuming the 90 days horizon Teleperformance SE is expected to under-perform the RB Global. In addition to that, Teleperformance is 1.86 times more volatile than RB Global. It trades about -0.05 of its total potential returns per unit of risk. RB Global is currently generating about 0.14 per unit of volatility. If you would invest  8,490  in RB Global on September 12, 2024 and sell it today you would earn a total of  1,125  from holding RB Global or generate 13.25% return on investment over 90 days.

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

Teleperformance SE  vs.  RB Global

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 latest weak performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

RB Global

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RB Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, RB Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleperformance and RB Global

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

The idea behind Teleperformance SE and RB Global 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.