Correlation Between Snap and AgileThought
Can any of the company-specific risk be diversified away by investing in both Snap 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 Snap and AgileThought into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and AgileThought, you can compare the effects of market volatilities on Snap 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 Snap with a short position of AgileThought. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and AgileThought.
Diversification Opportunities for Snap and AgileThought
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Snap and AgileThought is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc and AgileThought in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgileThought and Snap 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 Snap Inc 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 Snap i.e., Snap and AgileThought go up and down completely randomly.
Pair Corralation between Snap and AgileThought
Given the investment horizon of 90 days Snap is expected to generate 14.01 times less return on investment than AgileThought. But when comparing it to its historical volatility, Snap Inc is 5.13 times less risky than AgileThought. It trades about 0.03 of its potential returns per unit of risk. AgileThought is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7.00 in AgileThought on August 31, 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 Against |
| Strength | Significant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Snap Inc vs. AgileThought
Performance |
| Timeline |
| Snap Inc |
| AgileThought |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Snap and AgileThought Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and AgileThought
The main advantage of trading using opposite Snap and AgileThought positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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 Snap Inc 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. Katapult Holdings Equity | AgileThought vs. Arqit Quantum Warrants | AgileThought vs. AvePoint |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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