Correlation Between TTEC Holdings and Maximus
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and Maximus 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 Maximus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and Maximus, you can compare the effects of market volatilities on TTEC Holdings and Maximus 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 Maximus. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and Maximus.
Diversification Opportunities for TTEC Holdings and Maximus
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TTEC and Maximus is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Maximus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maximus 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 Maximus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maximus has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Maximus go up and down completely randomly.
Pair Corralation between TTEC Holdings and Maximus
Given the investment horizon of 90 days TTEC Holdings is expected to generate 1.78 times more return on investment than Maximus. However, TTEC Holdings is 1.78 times more volatile than Maximus. It trades about 0.06 of its potential returns per unit of risk. Maximus is currently generating about -0.28 per unit of risk. If you would invest 499.00 in TTEC Holdings on September 3, 2024 and sell it today you would earn a total of 19.00 from holding TTEC Holdings or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTEC Holdings vs. Maximus
Performance |
| Timeline |
| TTEC Holdings |
| Maximus |
TTEC Holdings and Maximus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTEC Holdings and Maximus
The main advantage of trading using opposite TTEC Holdings and Maximus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, Maximus 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 Maximus will offset losses from the drop in Maximus' long position.| TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Formula Systems 1985 | TTEC Holdings vs. FiscalNote Holdings | TTEC Holdings vs. International Business Machines |
| Maximus vs. Network 1 Technologies | Maximus vs. First Advantage Corp | Maximus vs. BrightView Holdings | Maximus vs. Civeo 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |