Correlation Between TTEC Holdings and Accenture Plc
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and Accenture Plc 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 Accenture Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and Accenture plc, you can compare the effects of market volatilities on TTEC Holdings and Accenture Plc 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 Accenture Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and Accenture Plc.
Diversification Opportunities for TTEC Holdings and Accenture Plc
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TTEC and Accenture is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Accenture plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accenture plc 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 Accenture Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accenture plc has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Accenture Plc go up and down completely randomly.
Pair Corralation between TTEC Holdings and Accenture Plc
Given the investment horizon of 90 days TTEC Holdings is expected to under-perform the Accenture Plc. In addition to that, TTEC Holdings is 2.96 times more volatile than Accenture plc. It trades about -0.08 of its total potential returns per unit of risk. Accenture plc is currently generating about 0.04 per unit of volatility. If you would invest 28,360 in Accenture plc on August 24, 2024 and sell it today you would earn a total of 7,745 from holding Accenture plc or generate 27.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTEC Holdings vs. Accenture plc
Performance |
| Timeline |
| TTEC Holdings |
| Accenture plc |
TTEC Holdings and Accenture Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTEC Holdings and Accenture Plc
The main advantage of trading using opposite TTEC Holdings and Accenture Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, Accenture Plc 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 Accenture Plc will offset losses from the drop in Accenture Plc's long position.| TTEC Holdings vs. ExlService Holdings | TTEC Holdings vs. Genpact Limited | TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Science Applications International |
| Accenture Plc vs. Globant SA | Accenture Plc vs. Concentrix | Accenture Plc vs. Cognizant Technology Solutions | Accenture Plc vs. CDW Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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