Correlation Between TTEC Holdings and Sigma Labs
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and Sigma Labs 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 Sigma Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and Sigma Labs, you can compare the effects of market volatilities on TTEC Holdings and Sigma Labs 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 Sigma Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and Sigma Labs.
Diversification Opportunities for TTEC Holdings and Sigma Labs
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between TTEC and Sigma is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Sigma Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigma Labs 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 Sigma Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigma Labs has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Sigma Labs go up and down completely randomly.
Pair Corralation between TTEC Holdings and Sigma Labs
Given the investment horizon of 90 days TTEC Holdings is expected to generate 0.64 times more return on investment than Sigma Labs. However, TTEC Holdings is 1.57 times less risky than Sigma Labs. It trades about -0.08 of its potential returns per unit of risk. Sigma Labs is currently generating about -0.11 per unit of risk. If you would invest 4,901 in TTEC Holdings on August 27, 2024 and sell it today you would lose (4,364) from holding TTEC Holdings or give up 89.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 25.71% |
| Values | Daily Returns |
TTEC Holdings vs. Sigma Labs
Performance |
| Timeline |
| TTEC Holdings |
| Sigma Labs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TTEC Holdings and Sigma Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTEC Holdings and Sigma Labs
The main advantage of trading using opposite TTEC Holdings and Sigma Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, Sigma Labs 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 Sigma Labs will offset losses from the drop in Sigma Labs' long position.| TTEC Holdings vs. ExlService Holdings | TTEC Holdings vs. Genpact Limited | TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. Science Applications International |
| Sigma Labs vs. Flint Telecom Group | Sigma Labs vs. Castellum | Sigma Labs vs. Datametrex AI Limited | Sigma Labs vs. TTEC Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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