Correlation Between TTEC Holdings and APAC Old

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

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

Diversification Opportunities for TTEC Holdings and APAC Old

-0.73

Correlation Coefficient

TTEC Holdings  APAC Old

Pay attention - limited upside

The 3 months correlation between TTEC and APAC is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and APAC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APAC Old and TTEC Holdings 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 TTEC Holdings are associated (or correlated) with APAC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APAC Old has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and APAC Old go up and down completely randomly.

Pair Corralation between TTEC Holdings and APAC Old

If you would invest  460.00  in TTEC Holdings on October 9, 2024 and sell it today you would lose (11.00) from holding TTEC Holdings or give up 2.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	2.56%
Values	Daily Returns

TTEC Holdings  vs.  APAC Old

TTEC Holdings

Risk-Adjusted Performance

0 of 100

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 February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

APAC Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APAC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, APAC Old is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with TTEC Holdings and APAC Old

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

The idea behind TTEC Holdings and APAC Old 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.