Correlation Between TTEC Holdings and StarTek
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and StarTek 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 StarTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and StarTek, you can compare the effects of market volatilities on TTEC Holdings and StarTek 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 StarTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and StarTek.
Diversification Opportunities for TTEC Holdings and StarTek
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TTEC and StarTek is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and StarTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarTek 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 StarTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarTek has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and StarTek go up and down completely randomly.
Pair Corralation between TTEC Holdings and StarTek
Given the investment horizon of 90 days TTEC Holdings is expected to under-perform the StarTek. In addition to that, TTEC Holdings is 1.35 times more volatile than StarTek. It trades about -0.07 of its total potential returns per unit of risk. StarTek is currently generating about -0.02 per unit of volatility. 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 |
TTEC Holdings vs. StarTek
Performance |
| Timeline |
| TTEC Holdings |
| StarTek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TTEC Holdings and StarTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTEC Holdings and StarTek
The main advantage of trading using opposite TTEC Holdings and StarTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, StarTek 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 StarTek will offset losses from the drop in StarTek's long position.| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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