Correlation Between Agiliti and Achiko AG

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

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

Diversification Opportunities for Agiliti and Achiko AG

0.0

Correlation Coefficient

Agiliti  Achiko AG

Pay attention - limited upside

The 3 months correlation between Agiliti and Achiko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agiliti and Achiko AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Achiko AG and Agiliti 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 Agiliti are associated (or correlated) with Achiko AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Achiko AG has no effect on the direction of Agiliti i.e., Agiliti and Achiko AG go up and down completely randomly.

Pair Corralation between Agiliti and Achiko AG

Given the investment horizon of 90 days Agiliti is expected to generate 0.6 times more return on investment than Achiko AG. However, Agiliti is 1.67 times less risky than Achiko AG. It trades about 0.03 of its potential returns per unit of risk. Achiko AG is currently generating about -0.09 per unit of risk. If you would invest  1,604  in Agiliti on September 14, 2024 and sell it today you would earn a total of  85.00  from holding Agiliti or generate 5.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	29.15%
Values	Daily Returns

Agiliti  vs.  Achiko AG

Agiliti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agiliti has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Agiliti is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Achiko AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Achiko AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Achiko AG is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Agiliti and Achiko AG

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

The idea behind Agiliti and Achiko AG 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.