Correlation Between Capgemini and AgileThought
Can any of the company-specific risk be diversified away by investing in both Capgemini 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 Capgemini and AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capgemini SE ADR and AgileThought, you can compare the effects of market volatilities on Capgemini 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 Capgemini with a short position of AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and AgileThought.
Diversification Opportunities for Capgemini and AgileThought
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Capgemini and AgileThought is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE ADR and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and Capgemini 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 Capgemini SE ADR 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 Capgemini i.e., Capgemini and AgileThought go up and down completely randomly.
Pair Corralation between Capgemini and AgileThought
If you would invest 3,204 in Capgemini SE ADR on November 4, 2024 and sell it today you would earn a total of 437.00 from holding Capgemini SE ADR or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Capgemini SE ADR vs. AgileThought
Performance |
| Timeline |
| Capgemini SE ADR |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Capgemini and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capgemini and AgileThought
The main advantage of trading using opposite Capgemini and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini 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.| Capgemini vs. Soluna Holdings Preferred | Capgemini vs. Crypto Co | Capgemini vs. ASGN Inc | Capgemini vs. Soluna Holdings |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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