Correlation Between CSP and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both CSP 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 CSP and TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Inc and TTEC Holdings, you can compare the effects of market volatilities on CSP 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 CSP with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP and TTEC Holdings.
Diversification Opportunities for CSP and TTEC Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CSP and TTEC is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and CSP 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 CSP Inc 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 CSP i.e., CSP and TTEC Holdings go up and down completely randomly.
Pair Corralation between CSP and TTEC Holdings
Given the investment horizon of 90 days CSP Inc is expected to generate 1.2 times more return on investment than TTEC Holdings. However, CSP is 1.2 times more volatile than TTEC Holdings. It trades about 0.12 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.06 per unit of risk. If you would invest 1,299 in CSP Inc on August 31, 2024 and sell it today you would earn a total of 283.00 from holding CSP Inc or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSP Inc vs. TTEC Holdings
Performance |
| Timeline |
| CSP Inc |
| TTEC Holdings |
CSP and TTEC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP and TTEC Holdings
The main advantage of trading using opposite CSP and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP 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.| CSP vs. The Hackett Group | CSP vs. Nayax | CSP vs. Formula Systems 1985 | CSP vs. Information Services Group |
| TTEC Holdings vs. ExlService Holdings | TTEC Holdings vs. Genpact Limited | TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Science Applications International |
Check out your portfolio center.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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