Correlation Between TTEC Holdings and Thoughtworks Holding
Can any of the company-specific risk be diversified away by investing in both TTEC Holdings and Thoughtworks Holding 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 Thoughtworks Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTEC Holdings and Thoughtworks Holding, you can compare the effects of market volatilities on TTEC Holdings and Thoughtworks Holding 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 Thoughtworks Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTEC Holdings and Thoughtworks Holding.
Diversification Opportunities for TTEC Holdings and Thoughtworks Holding
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TTEC and Thoughtworks is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Thoughtworks Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoughtworks Holding 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 Thoughtworks Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoughtworks Holding has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Thoughtworks Holding go up and down completely randomly.
Pair Corralation between TTEC Holdings and Thoughtworks Holding
Given the investment horizon of 90 days TTEC Holdings is expected to under-perform the Thoughtworks Holding. But the stock apears to be less risky and, when comparing its historical volatility, TTEC Holdings is 1.15 times less risky than Thoughtworks Holding. The stock trades about -0.1 of its potential returns per unit of risk. The Thoughtworks Holding is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Thoughtworks Holding on January 31, 2024 and sell it today you would lose (1,244) from holding Thoughtworks Holding or give up 84.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
TTEC Holdings vs. Thoughtworks Holding
Performance |
Timeline |
TTEC Holdings |
Thoughtworks Holding |
TTEC Holdings and Thoughtworks Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TTEC Holdings and Thoughtworks Holding
The main advantage of trading using opposite TTEC Holdings and Thoughtworks Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTEC Holdings position performs unexpectedly, Thoughtworks Holding 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 Thoughtworks Holding will offset losses from the drop in Thoughtworks Holding's long position.TTEC Holdings vs. ASGN Inc | TTEC Holdings vs. CACI International | TTEC Holdings vs. Perficient | TTEC Holdings vs. Science Applications International |
Thoughtworks Holding vs. Digatrade Financial Corp | Thoughtworks Holding vs. Information Services Group | Thoughtworks Holding vs. Widepoint C | Thoughtworks Holding vs. Usio Inc |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |