Correlation Between Concentrix and Taskus

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

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

Diversification Opportunities for Concentrix and Taskus

-0.43

Correlation Coefficient

Concentrix  Taskus

Very good diversification

The 3 months correlation between Concentrix and Taskus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Concentrix and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc and Concentrix 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 Concentrix are associated (or correlated) with Taskus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taskus Inc has no effect on the direction of Concentrix i.e., Concentrix and Taskus go up and down completely randomly.

Pair Corralation between Concentrix and Taskus

Given the investment horizon of 90 days Concentrix is expected to generate 1.71 times less return on investment than Taskus. But when comparing it to its historical volatility, Concentrix is 1.29 times less risky than Taskus. It trades about 0.24 of its potential returns per unit of risk. Taskus Inc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  1,415  in Taskus Inc on September 17, 2024 and sell it today you would earn a total of  431.00  from holding Taskus Inc or generate 30.46% return on investment over 90 days.

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

Concentrix  vs.  Taskus Inc

Concentrix

Risk-Adjusted Performance

0 of 100

Very Weak

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

Taskus Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Taskus Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Taskus disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Concentrix and Taskus

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

The idea behind Concentrix and Taskus Inc 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.