Correlation Between AgileThought and High Wire

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

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

Diversification Opportunities for AgileThought and High Wire

0.0

Correlation Coefficient

AgileThought  High Wire

Pay attention - limited upside

The 3 months correlation between AgileThought and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AgileThought and High Wire Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Wire Networks and AgileThought 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 AgileThought are associated (or correlated) with High Wire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Wire Networks has no effect on the direction of AgileThought i.e., AgileThought and High Wire go up and down completely randomly.

Pair Corralation between AgileThought and High Wire

If you would invest  3.73  in High Wire Networks on December 30, 2024 and sell it today you would lose (0.08) from holding High Wire Networks or give up 2.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

AgileThought  vs.  High Wire Networks

AgileThought

Risk-Adjusted Performance

Very Weak

Over the last 90 days AgileThought has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable essential indicators, AgileThought is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

High Wire Networks

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in High Wire Networks are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, High Wire demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AgileThought and High Wire

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

The idea behind AgileThought and High Wire Networks 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..