Correlation Between Agile Content and Sacyr SA

Can any of the company-specific risk be diversified away by investing in both Agile Content and Sacyr SA 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 Sacyr SA 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 Sacyr SA, you can compare the effects of market volatilities on Agile Content and Sacyr SA 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 Sacyr SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Content and Sacyr SA.

Diversification Opportunities for Agile Content and Sacyr SA

-0.56

Correlation Coefficient

Agile Content  Sacyr SA

Excellent diversification

The 3 months correlation between Agile and Sacyr is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Agile Content SA and Sacyr SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sacyr SA 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 Sacyr SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sacyr SA has no effect on the direction of Agile Content i.e., Agile Content and Sacyr SA go up and down completely randomly.

Pair Corralation between Agile Content and Sacyr SA

Assuming the 90 days trading horizon Agile Content SA is expected to under-perform the Sacyr SA. In addition to that, Agile Content is 1.6 times more volatile than Sacyr SA. It trades about -0.14 of its total potential returns per unit of risk. Sacyr SA is currently generating about 0.2 per unit of volatility. If you would invest  311.00  in Sacyr SA on April 24, 2025 and sell it today you would earn a total of  42.00  from holding Sacyr SA or generate 13.5% return on investment over 90 days.

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

Agile Content SA  vs.  Sacyr SA

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.

Sacyr SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Sacyr SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Sacyr SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agile Content and Sacyr SA

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

The idea behind Agile Content SA and Sacyr SA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.