Correlation Between CSP and AgileThought

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

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

Diversification Opportunities for CSP and AgileThought

0.0

Correlation Coefficient

CSP  AgileThought

Pay attention - limited upside

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

Pair Corralation between CSP and AgileThought

If you would invest (100.00) in AgileThought on December 30, 2024 and sell it today you would earn a total of  100.00  from holding AgileThought or generate -100.0% return on investment over 90 days.

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

CSP Inc  vs.  AgileThought

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, CSP is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

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. Despite quite persistent forward indicators, AgileThought is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with CSP and AgileThought

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

The idea behind CSP Inc and AgileThought 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.