Correlation Between Agiliti and Arbe Robotics

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Can any of the company-specific risk be diversified away by investing in both Agiliti and Arbe Robotics 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 Arbe Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agiliti and Arbe Robotics, you can compare the effects of market volatilities on Agiliti and Arbe Robotics 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 Arbe Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agiliti and Arbe Robotics.

Diversification Opportunities for Agiliti and Arbe Robotics

-0.75
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Agiliti and Arbe Robotics is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Agiliti and Arbe Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbe Robotics 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 Arbe Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbe Robotics has no effect on the direction of Agiliti i.e., Agiliti and Arbe Robotics go up and down completely randomly.

Pair Corralation between Agiliti and Arbe Robotics

Given the investment horizon of 90 days Agiliti is expected to generate 0.97 times more return on investment than Arbe Robotics. However, Agiliti is 1.03 times less risky than Arbe Robotics. It trades about 0.02 of its potential returns per unit of risk. Arbe Robotics is currently generating about -0.01 per unit of risk. If you would invest  1,640  in Agiliti on July 6, 2022 and sell it today you would earn a total of  9.00  from holding Agiliti or generate 0.55% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy75.46%
ValuesDaily Returns

Agiliti  vs.  Arbe Robotics

 Performance (%) 
       Timeline  
Agiliti 
Agiliti Performance
0 of 100
Over the last 90 days Agiliti has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Agiliti Price Channel

Arbe Robotics 
Arbe Robotics Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Arbe Robotics are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental drivers, Arbe Robotics exhibited solid returns over the last few months and may actually be approaching a breakup point.

Arbe Robotics Price Channel

Agiliti and Arbe Robotics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agiliti and Arbe Robotics

The main advantage of trading using opposite Agiliti and Arbe Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agiliti position performs unexpectedly, Arbe Robotics 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 Arbe Robotics will offset losses from the drop in Arbe Robotics' long position.
Agiliti vs. Amazon Inc
The idea behind Agiliti and Arbe Robotics 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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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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