Correlation Between GM and AgileThought
Can any of the company-specific risk be diversified away by investing in both GM 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 GM and AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and AgileThought, you can compare the effects of market volatilities on GM 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 GM with a short position of AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and AgileThought.
Diversification Opportunities for GM and AgileThought
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and AgileThought is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and GM 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 General Motors 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 GM i.e., GM and AgileThought go up and down completely randomly.
Pair Corralation between GM and AgileThought
If you would invest 5,273 in General Motors on August 28, 2024 and sell it today you would earn a total of 206.00 from holding General Motors or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
General Motors vs. AgileThought
Performance |
| Timeline |
| General Motors |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and AgileThought
The main advantage of trading using opposite GM and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM 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 General Motors 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.| AgileThought vs. Genpact Limited | AgileThought vs. ExlService Holdings | AgileThought vs. Science Applications International | AgileThought vs. CLARIVATE PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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