Correlation Between Matthews International and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both Matthews International 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 Matthews International and TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews International and TTEC Holdings, you can compare the effects of market volatilities on Matthews International 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 Matthews International with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews International and TTEC Holdings.
Diversification Opportunities for Matthews International and TTEC Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Matthews and TTEC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Matthews International and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and Matthews International 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 Matthews International 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 Matthews International i.e., Matthews International and TTEC Holdings go up and down completely randomly.
Pair Corralation between Matthews International and TTEC Holdings
Given the investment horizon of 90 days Matthews International is expected to generate 1.09 times more return on investment than TTEC Holdings. However, Matthews International is 1.09 times more volatile than TTEC Holdings. It trades about -0.07 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.23 per unit of risk. If you would invest 3,118 in Matthews International on November 4, 2024 and sell it today you would lose (319.00) from holding Matthews International or give up 10.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews International vs. TTEC Holdings
Performance |
| Timeline |
| Matthews International |
| TTEC Holdings |
Matthews International and TTEC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews International and TTEC Holdings
The main advantage of trading using opposite Matthews International and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews International 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.| Matthews International vs. Steel Partners Holdings | Matthews International vs. Compass Diversified | Matthews International vs. Brookfield Business Partners | Matthews International vs. Tejon Ranch Co |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |