Correlation Between Agilysys and Intellinetics

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

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

Diversification Opportunities for Agilysys and Intellinetics

0.63

Correlation Coefficient

Agilysys  Intellinetics

Poor diversification

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

Pair Corralation between Agilysys and Intellinetics

Given the investment horizon of 90 days Agilysys is expected to generate 1.8 times less return on investment than Intellinetics. But when comparing it to its historical volatility, Agilysys is 1.69 times less risky than Intellinetics. It trades about 0.13 of its potential returns per unit of risk. Intellinetics is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,012  in Intellinetics on September 4, 2024 and sell it today you would earn a total of  441.00  from holding Intellinetics or generate 43.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Agilysys  vs.  Intellinetics

Agilysys

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Intellinetics

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intellinetics are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, Intellinetics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilysys and Intellinetics

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

The idea behind Agilysys and Intellinetics 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.