Correlation Between TTEC Holdings and Leidos Holdings

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

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

Diversification Opportunities for TTEC Holdings and Leidos Holdings

0.32

Correlation Coefficient

TTEC Holdings  Leidos Holdings

Weak diversification

The 3 months correlation between TTEC and Leidos is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TTEC Holdings and Leidos Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leidos Holdings 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 Leidos Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leidos Holdings has no effect on the direction of TTEC Holdings i.e., TTEC Holdings and Leidos Holdings go up and down completely randomly.

Pair Corralation between TTEC Holdings and Leidos Holdings

Given the investment horizon of 90 days TTEC Holdings is expected to generate 1.35 times more return on investment than Leidos Holdings. However, TTEC Holdings is 1.35 times more volatile than Leidos Holdings. It trades about -0.03 of its potential returns per unit of risk. Leidos Holdings is currently generating about -0.14 per unit of risk. If you would invest  544.00  in TTEC Holdings on August 30, 2024 and sell it today you would lose (30.00) from holding TTEC Holdings or give up 5.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TTEC Holdings  vs.  Leidos Holdings

TTEC Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in TTEC Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, TTEC Holdings may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Leidos Holdings

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Leidos Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Leidos Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with TTEC Holdings and Leidos Holdings

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

The idea behind TTEC Holdings and Leidos 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.