Correlation Between StarTek and Taskus

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

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

Diversification Opportunities for StarTek and Taskus

0.0

Correlation Coefficient

StarTek  Taskus

Pay attention - limited upside

The 3 months correlation between StarTek and Taskus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding StarTek and Taskus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taskus Inc and StarTek 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 StarTek 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 StarTek i.e., StarTek and Taskus go up and down completely randomly.

Pair Corralation between StarTek and Taskus

If you would invest  1,609  in Taskus Inc on October 20, 2024 and sell it today you would earn a total of  68.00  from holding Taskus Inc or generate 4.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

StarTek  vs.  Taskus Inc

StarTek

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days StarTek has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, StarTek is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Taskus Inc

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Taskus Inc are ranked lower than 9 (%) 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 StarTek and Taskus

The main advantage of trading using opposite StarTek and Taskus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarTek 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 StarTek 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.