Correlation Between Datametrex and AgileThought

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

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

Diversification Opportunities for Datametrex and AgileThought

-0.04

Correlation Coefficient

Datametrex  AgileThought

Good diversification

The 3 months correlation between Datametrex and AgileThought is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Datametrex AI Limited and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and Datametrex 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 Datametrex AI Limited 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 Datametrex i.e., Datametrex and AgileThought go up and down completely randomly.

Pair Corralation between Datametrex and AgileThought

Assuming the 90 days horizon Datametrex AI Limited is expected to generate 0.77 times more return on investment than AgileThought. However, Datametrex AI Limited is 1.29 times less risky than AgileThought. It trades about 0.04 of its potential returns per unit of risk. AgileThought is currently generating about 0.0 per unit of risk. If you would invest  7.23  in Datametrex AI Limited on October 10, 2024 and sell it today you would lose (6.69) from holding Datametrex AI Limited or give up 92.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	17.51%
Values	Daily Returns

Datametrex AI Limited  vs.  AgileThought

Datametrex AI Limited

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datametrex AI Limited are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Datametrex reported solid returns over the last few months and may actually be approaching a breakup point.

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. 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.

Pair Trading with Datametrex and AgileThought

The main advantage of trading using opposite Datametrex and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datametrex 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 Datametrex AI Limited 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.