Correlation Between Nomura Research and TTEC Holdings

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

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

Diversification Opportunities for Nomura Research and TTEC Holdings

-0.12

Correlation Coefficient

Nomura Research  TTEC Holdings

Good diversification

The 3 months correlation between Nomura and TTEC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nomura Research Institute and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and Nomura Research 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 Nomura Research Institute 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 Nomura Research i.e., Nomura Research and TTEC Holdings go up and down completely randomly.

Pair Corralation between Nomura Research and TTEC Holdings

Assuming the 90 days horizon Nomura Research Institute is expected to generate 0.29 times more return on investment than TTEC Holdings. However, Nomura Research Institute is 3.47 times less risky than TTEC Holdings. It trades about 0.06 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.01 per unit of risk. If you would invest  2,695  in Nomura Research Institute on September 17, 2024 and sell it today you would earn a total of  345.00  from holding Nomura Research Institute or generate 12.8% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.21%
Values	Daily Returns

Nomura Research Institute  vs.  TTEC Holdings

Nomura Research Institute

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nomura Research Institute has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company 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 Nomura Research and TTEC Holdings

The main advantage of trading using opposite Nomura Research and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomura Research 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 Nomura Research Institute 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 Global Correlations module to find global opportunities by holding instruments from different markets.