Correlation Between ExlService Holdings and TTEC Holdings

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

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

Diversification Opportunities for ExlService Holdings and TTEC Holdings

-0.25

Correlation Coefficient

ExlService Holdings  TTEC Holdings

Very good diversification

The 3 months correlation between ExlService and TTEC is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and TTEC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTEC Holdings and ExlService 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 ExlService Holdings 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 ExlService Holdings i.e., ExlService Holdings and TTEC Holdings go up and down completely randomly.

Pair Corralation between ExlService Holdings and TTEC Holdings

Given the investment horizon of 90 days ExlService Holdings is expected to generate 9.87 times less return on investment than TTEC Holdings. But when comparing it to its historical volatility, ExlService Holdings is 3.38 times less risky than TTEC Holdings. It trades about 0.08 of its potential returns per unit of risk. TTEC Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  381.00  in TTEC Holdings on February 9, 2025 and sell it today you would earn a total of  149.00  from holding TTEC Holdings or generate 39.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ExlService Holdings  vs.  TTEC Holdings

ExlService Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm 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 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak 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 ExlService Holdings and TTEC Holdings

The main advantage of trading using opposite ExlService Holdings and TTEC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings 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 ExlService Holdings 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.