Correlation Between AgileThought and Dave

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

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

Diversification Opportunities for AgileThought and Dave

-0.85

Correlation Coefficient

AgileThought  Dave

Pay attention - limited upside

The 3 months correlation between AgileThought and Dave is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding AgileThought and Dave Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dave Inc and AgileThought 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 AgileThought are associated (or correlated) with Dave. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dave Inc has no effect on the direction of AgileThought i.e., AgileThought and Dave go up and down completely randomly.

Pair Corralation between AgileThought and Dave

If you would invest  2,408  in Dave Inc on January 20, 2024 and sell it today you would earn a total of  1,003  from holding Dave Inc or generate 41.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	2.33%
Values	Daily Returns

AgileThought  vs.  Dave Inc

AgileThought

Risk-Adjusted Performance

0 of 100

Very Strong

Over the last 90 days AgileThought has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite weak forward indicators, AgileThought disclosed solid returns over the last few months and may actually be approaching a breakup point.

Dave Inc

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dave Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Dave exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AgileThought and Dave

The main advantage of trading using opposite AgileThought and Dave positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AgileThought position performs unexpectedly, Dave 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 Dave will offset losses from the drop in Dave's long position.

The idea behind AgileThought and Dave Inc 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.