Correlation Between RB Global and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both RB Global 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 RB Global and TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Global and TTEC Holdings, you can compare the effects of market volatilities on RB Global 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 RB Global with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Global and TTEC Holdings.
Diversification Opportunities for RB Global and TTEC Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RBA and TTEC is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding RB Global and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and RB Global 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 RB Global 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 RB Global i.e., RB Global and TTEC Holdings go up and down completely randomly.
Pair Corralation between RB Global and TTEC Holdings
Considering the 90-day investment horizon RB Global is expected to generate 0.29 times more return on investment than TTEC Holdings. However, RB Global is 3.44 times less risky than TTEC Holdings. It trades about 0.48 of its potential returns per unit of risk. TTEC Holdings is currently generating about 0.01 per unit of risk. If you would invest 8,609 in RB Global on August 28, 2024 and sell it today you would earn a total of 1,241 from holding RB Global or generate 14.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB Global vs. TTEC Holdings
Performance |
| Timeline |
| RB Global |
| TTEC Holdings |
RB Global and TTEC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Global and TTEC Holdings
The main advantage of trading using opposite RB Global and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Global 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.The idea behind RB Global and TTEC 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.| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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