Correlation Between StarTek and TTEC Holdings
Can any of the company-specific risk be diversified away by investing in both StarTek 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 StarTek and TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between StarTek and TTEC Holdings, you can compare the effects of market volatilities on StarTek 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 StarTek with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of StarTek and TTEC Holdings.
Diversification Opportunities for StarTek and TTEC Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between StarTek and TTEC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding StarTek and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and StarTek 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 StarTek 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 StarTek i.e., StarTek and TTEC Holdings go up and down completely randomly.
Pair Corralation between StarTek and TTEC Holdings
Considering the 90-day investment horizon StarTek is expected to generate 0.74 times more return on investment than TTEC Holdings. However, StarTek is 1.35 times less risky than TTEC Holdings. It trades about -0.02 of its potential returns per unit of risk. TTEC Holdings is currently generating about -0.07 per unit of risk. If you would invest 390.00 in StarTek on August 28, 2024 and sell it today you would lose (68.00) from holding StarTek or give up 17.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.52% |
| Values | Daily Returns |
StarTek vs. TTEC Holdings
Performance |
| Timeline |
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| TTEC Holdings |
StarTek and TTEC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with StarTek and TTEC Holdings
The main advantage of trading using opposite StarTek and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if StarTek 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 StarTek 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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