Correlation Between VanEck ETF and AgileThought

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

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

Diversification Opportunities for VanEck ETF and AgileThought

0.47

Correlation Coefficient

VanEck ETF  AgileThought

Very weak diversification

The 3 months correlation between VanEck and AgileThought is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding VanEck ETF Trust and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and VanEck ETF 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 VanEck ETF Trust 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 VanEck ETF i.e., VanEck ETF and AgileThought go up and down completely randomly.

Pair Corralation between VanEck ETF and AgileThought

If you would invest  4,593  in VanEck ETF Trust on September 14, 2024 and sell it today you would earn a total of  14.00  from holding VanEck ETF Trust or generate 0.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

VanEck ETF Trust  vs.  AgileThought

VanEck ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VanEck ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward indicators, VanEck ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

AgileThought

Risk-Adjusted Performance

0 of 100

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 VanEck ETF and AgileThought

The main advantage of trading using opposite VanEck ETF and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck ETF 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 VanEck ETF Trust 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.

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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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.