Correlation Between IBEX and AgileThought

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

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

Diversification Opportunities for IBEX and AgileThought

-0.47

Correlation Coefficient

IBEX  AgileThought

Very good diversification

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

Pair Corralation between IBEX and AgileThought

If you would invest  1,703  in IBEX on September 4, 2024 and sell it today you would earn a total of  368.00  from holding IBEX or generate 21.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

IBEX  vs.  AgileThought

IBEX

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in IBEX are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, IBEX showed 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 IBEX and AgileThought

The main advantage of trading using opposite IBEX and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 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 IBEX 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 Transaction History module to view history of all your transactions and understand their impact on performance.