Correlation Between Agile Content and General De

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

By analyzing existing cross correlation between Agile Content SA and General de Alquiler, you can compare the effects of market volatilities on Agile Content and General De 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 Agile Content with a short position of General De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Content and General De.

Diversification Opportunities for Agile Content and General De

-0.63

Correlation Coefficient

Agile Content  General De

Excellent diversification

The 3 months correlation between Agile and General is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Agile Content SA and General de Alquiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General de Alquiler and Agile Content 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 Agile Content SA are associated (or correlated) with General De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General de Alquiler has no effect on the direction of Agile Content i.e., Agile Content and General De go up and down completely randomly.

Pair Corralation between Agile Content and General De

Assuming the 90 days trading horizon Agile Content SA is expected to under-perform the General De. In addition to that, Agile Content is 1.03 times more volatile than General de Alquiler. It trades about -0.13 of its total potential returns per unit of risk. General de Alquiler is currently generating about 0.05 per unit of volatility. If you would invest  124.00  in General de Alquiler on April 21, 2025 and sell it today you would earn a total of  6.00  from holding General de Alquiler or generate 4.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Agile Content SA  vs.  General de Alquiler

Agile Content SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agile Content SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

General de Alquiler

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in General de Alquiler are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, General De is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Agile Content and General De

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

The idea behind Agile Content SA and General de Alquiler 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.