Correlation Between TTEC Holdings and Applied Blockchain
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and Applied Blockchain 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 Applied Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and Applied Blockchain, you can compare the effects of market volatilities on TTEC Holdings and Applied Blockchain 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 Applied Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and Applied Blockchain.
Diversification Opportunities for TTEC Holdings and Applied Blockchain
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TTEC and Applied is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Applied Blockchain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Blockchain 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 Applied Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Blockchain has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Applied Blockchain go up and down completely randomly.
Pair Corralation between TTEC Holdings and Applied Blockchain
Given the investment horizon of 90 days TTEC Holdings is expected to generate 3.08 times less return on investment than Applied Blockchain. But when comparing it to its historical volatility, TTEC Holdings is 1.6 times less risky than Applied Blockchain. It trades about 0.11 of its potential returns per unit of risk. Applied Blockchain is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 686.00 in Applied Blockchain on September 15, 2024 and sell it today you would earn a total of 204.00 from holding Applied Blockchain or generate 29.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTEC Holdings vs. Applied Blockchain
Performance |
| Timeline |
| TTEC Holdings |
| Applied Blockchain |
TTEC Holdings and Applied Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTEC Holdings and Applied Blockchain
The main advantage of trading using opposite TTEC Holdings and Applied Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, Applied Blockchain 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 Applied Blockchain will offset losses from the drop in Applied Blockchain's long position.| TTEC Holdings vs. ExlService Holdings | TTEC Holdings vs. Genpact Limited | TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Science Applications International |
| Applied Blockchain vs. Flint Telecom Group | Applied Blockchain vs. Datametrex AI Limited | Applied Blockchain vs. TTEC Holdings | Applied Blockchain vs. Digatrade Financial 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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