Correlation Between Jack Henry and TTEC Holdings

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

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

Diversification Opportunities for Jack Henry and TTEC Holdings

0.65

Correlation Coefficient

Jack Henry  TTEC Holdings

Poor diversification

The 3 months correlation between Jack and TTEC is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jack Henry Associates and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and Jack Henry 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 Jack Henry Associates 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 Jack Henry i.e., Jack Henry and TTEC Holdings go up and down completely randomly.

Pair Corralation between Jack Henry and TTEC Holdings

Given the investment horizon of 90 days Jack Henry Associates is expected to generate 0.21 times more return on investment than TTEC Holdings. However, Jack Henry Associates is 4.75 times less risky than TTEC Holdings. It trades about -0.09 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.04 per unit of risk. If you would invest  18,300  in Jack Henry Associates on September 27, 2024 and sell it today you would lose (602.00) from holding Jack Henry Associates or give up 3.29% of portfolio value over 90 days.

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

Jack Henry Associates  vs.  TTEC Holdings

Jack Henry Associates

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Henry Associates are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical indicators, Jack Henry is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

TTEC Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TTEC Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, TTEC Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jack Henry and TTEC Holdings

The main advantage of trading using opposite Jack Henry and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Henry 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 Jack Henry Associates 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.

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