Correlation Between American National and TTEC Holdings

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

By analyzing existing cross correlation between American National Bankshares and TTEC Holdings, you can compare the effects of market volatilities on American National and TTEC 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 American National with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of American National and TTEC Holdings.

Diversification Opportunities for American National and TTEC Holdings

0.0

Correlation Coefficient

American National  TTEC Holdings

Pay attention - limited upside

The 3 months correlation between American and TTEC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American National Bankshares and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and American National 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 American National Bankshares are associated (or correlated) with TTEC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTEC Holdings has no effect on the direction of American National i.e., American National and TTEC Holdings go up and down completely randomly.

Pair Corralation between American National and TTEC Holdings

If you would invest (100.00) in American National Bankshares on December 20, 2024 and sell it today you would earn a total of  100.00  from holding American National Bankshares or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

American National Bankshares  vs.  TTEC Holdings

American National

Risk-Adjusted Performance

Very Weak

Over the last 90 days American National Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, American National is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

TTEC Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days TTEC Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with American National and TTEC Holdings

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

The idea behind American National Bankshares and TTEC 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.