Correlation Between Teleperformance and BrightView Holdings

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

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

Diversification Opportunities for Teleperformance and BrightView Holdings

0.18

Correlation Coefficient

Teleperformance  BrightView Holdings

Average diversification

The 3 months correlation between Teleperformance and BrightView is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and BrightView Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrightView Holdings 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 BrightView Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrightView Holdings has no effect on the direction of Teleperformance i.e., Teleperformance and BrightView Holdings go up and down completely randomly.

Pair Corralation between Teleperformance and BrightView Holdings

Assuming the 90 days horizon Teleperformance SE is expected to under-perform the BrightView Holdings. In addition to that, Teleperformance is 1.81 times more volatile than BrightView Holdings. It trades about -0.07 of its total potential returns per unit of risk. BrightView Holdings is currently generating about -0.06 per unit of volatility. If you would invest  1,670  in BrightView Holdings on May 13, 2025 and sell it today you would lose (152.00) from holding BrightView Holdings or give up 9.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Teleperformance SE  vs.  BrightView Holdings

Teleperformance SE

Risk-Adjusted Performance

Weakest

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 September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

BrightView Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days BrightView Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Teleperformance and BrightView Holdings

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

The idea behind Teleperformance SE and BrightView Holdings 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.