Correlation Between Confluent and TTEC Holdings

Can any of the company-specific risk be diversified away by investing in both Confluent and TTEC Holdings 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 Confluent and TTEC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Confluent and TTEC Holdings, you can compare the effects of market volatilities on Confluent and TTEC Holdings 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 Confluent with a short position of TTEC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Confluent and TTEC Holdings.

Diversification Opportunities for Confluent and TTEC Holdings

0.45

Correlation Coefficient

Confluent  TTEC Holdings

Very weak diversification

The 3 months correlation between Confluent and TTEC is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Confluent and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and Confluent 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 Confluent are associated (or correlated) with TTEC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTEC Holdings has no effect on the direction of Confluent i.e., Confluent and TTEC Holdings go up and down completely randomly.

Pair Corralation between Confluent and TTEC Holdings

Given the investment horizon of 90 days Confluent is expected to under-perform the TTEC Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Confluent is 1.03 times less risky than TTEC Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The TTEC Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  381.00  in TTEC Holdings on May 3, 2025 and sell it today you would earn a total of  117.00  from holding TTEC Holdings or generate 30.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Confluent  vs.  TTEC Holdings

Confluent

Risk-Adjusted Performance

Very Weak

Over the last 90 days Confluent has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Confluent is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

TTEC Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TTEC Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, TTEC Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Confluent and TTEC Holdings

The main advantage of trading using opposite Confluent and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Confluent position performs unexpectedly, TTEC Holdings 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 TTEC Holdings will offset losses from the drop in TTEC Holdings' long position.

The idea behind Confluent and TTEC Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.