Correlation Between Perficient and AgileThought
Can any of the company-specific risk be diversified away by investing in both Perficient 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 Perficient and AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perficient and AgileThought, you can compare the effects of market volatilities on Perficient 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 Perficient with a short position of AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perficient and AgileThought.
Diversification Opportunities for Perficient and AgileThought
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perficient and AgileThought is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Perficient and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and Perficient 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 Perficient 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 Perficient i.e., Perficient and AgileThought go up and down completely randomly.
Pair Corralation between Perficient and AgileThought
Given the investment horizon of 90 days Perficient is expected to generate 0.51 times more return on investment than AgileThought. However, Perficient is 1.95 times less risky than AgileThought. It trades about 0.02 of its potential returns per unit of risk. AgileThought is currently generating about -0.08 per unit of risk. If you would invest 7,088 in Perficient on August 27, 2024 and sell it today you would earn a total of 508.00 from holding Perficient or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 34.5% |
| Values | Daily Returns |
Perficient vs. AgileThought
Performance |
| Timeline |
| Perficient |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Perficient and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perficient and AgileThought
The main advantage of trading using opposite Perficient and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perficient 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.| Perficient vs. WNS Holdings | Perficient vs. Genpact Limited | Perficient vs. ASGN Inc | Perficient vs. CACI International |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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