Correlation Between TTEC Holdings and Maximus

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

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

Diversification Opportunities for TTEC Holdings and Maximus

0.02

Correlation Coefficient

TTEC Holdings  Maximus

Significant diversification

The 3 months correlation between TTEC and Maximus is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus 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 Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Maximus go up and down completely randomly.

Pair Corralation between TTEC Holdings and Maximus

Given the investment horizon of 90 days TTEC Holdings is expected to under-perform the Maximus. In addition to that, TTEC Holdings is 3.07 times more volatile than Maximus. It trades about -0.08 of its total potential returns per unit of risk. Maximus is currently generating about -0.02 per unit of volatility. If you would invest  7,905  in Maximus on November 27, 2024 and sell it today you would lose (1,305) from holding Maximus or give up 16.51% of portfolio value over 90 days.

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

TTEC Holdings  vs.  Maximus

TTEC Holdings

Risk-Adjusted Performance

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

Maximus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maximus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with TTEC Holdings and Maximus

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

The idea behind TTEC Holdings and Maximus 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.