Correlation Between Teleperformance and Network 1

Can any of the company-specific risk be diversified away by investing in both Teleperformance and Network 1 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 Network 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Teleperformance SE and Network 1 Technologies, you can compare the effects of market volatilities on Teleperformance and Network 1 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 Network 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleperformance and Network 1.

Diversification Opportunities for Teleperformance and Network 1

-0.21

Correlation Coefficient

Teleperformance  Network 1

Very good diversification

The 3 months correlation between Teleperformance and Network is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Teleperformance SE and Network 1 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network 1 Technologies 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 Network 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network 1 Technologies has no effect on the direction of Teleperformance i.e., Teleperformance and Network 1 go up and down completely randomly.

Pair Corralation between Teleperformance and Network 1

Assuming the 90 days horizon Teleperformance SE is expected to under-perform the Network 1. In addition to that, Teleperformance is 1.67 times more volatile than Network 1 Technologies. It trades about -0.09 of its total potential returns per unit of risk. Network 1 Technologies is currently generating about 0.11 per unit of volatility. If you would invest  124.00  in Network 1 Technologies on May 8, 2025 and sell it today you would earn a total of  18.00  from holding Network 1 Technologies or generate 14.52% 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.  Network 1 Technologies

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.

Network 1 Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Network 1 Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Network 1 reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleperformance and Network 1

The main advantage of trading using opposite Teleperformance and Network 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleperformance position performs unexpectedly, Network 1 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 Network 1 will offset losses from the drop in Network 1's long position.

The idea behind Teleperformance SE and Network 1 Technologies 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.