Correlation Between Sonasoft Corp and AgileThought

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

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

Diversification Opportunities for Sonasoft Corp and AgileThought

0.69

Correlation Coefficient

Sonasoft Corp  AgileThought

Poor diversification

The 3 months correlation between Sonasoft and AgileThought is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sonasoft Corp and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and Sonasoft Corp 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 Sonasoft Corp 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 Sonasoft Corp i.e., Sonasoft Corp and AgileThought go up and down completely randomly.

Pair Corralation between Sonasoft Corp and AgileThought

If you would invest  7.00  in AgileThought on September 1, 2024 and sell it today you would earn a total of  0.00  from holding AgileThought or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Sonasoft Corp  vs.  AgileThought

Sonasoft Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sonasoft Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Sonasoft Corp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private 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. 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 Sonasoft Corp and AgileThought

The main advantage of trading using opposite Sonasoft Corp and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonasoft Corp 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 Sonasoft Corp 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.