Correlation Between TTEC Holdings and FiscalNote Holdings

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

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

Diversification Opportunities for TTEC Holdings and FiscalNote Holdings

0.13

Correlation Coefficient

TTEC Holdings  FiscalNote Holdings

Average diversification

The 3 months correlation between TTEC and FiscalNote is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and FiscalNote Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FiscalNote Holdings 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 FiscalNote Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FiscalNote Holdings has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and FiscalNote Holdings go up and down completely randomly.

Pair Corralation between TTEC Holdings and FiscalNote Holdings

Given the investment horizon of 90 days TTEC Holdings is expected to generate 1.13 times more return on investment than FiscalNote Holdings. However, TTEC Holdings is 1.13 times more volatile than FiscalNote Holdings. It trades about 0.01 of its potential returns per unit of risk. FiscalNote Holdings is currently generating about -0.01 per unit of risk. If you would invest  527.00  in TTEC Holdings on September 23, 2024 and sell it today you would lose (73.00) from holding TTEC Holdings or give up 13.85% 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.  FiscalNote Holdings

TTEC Holdings

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in TTEC Holdings are ranked lower than 4 (%) 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.

FiscalNote Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FiscalNote Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FiscalNote Holdings 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 FiscalNote Holdings

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

The idea behind TTEC Holdings and FiscalNote 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.