Correlation Between Icad and Agiliti

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

Diversification Opportunities for Icad and Agiliti

0.85
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Icad and Agiliti is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Icad Inc and Agiliti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agiliti and Icad 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 Icad Inc are associated (or correlated) with Agiliti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agiliti has no effect on the direction of Icad i.e., Icad and Agiliti go up and down completely randomly.

Pair Corralation between Icad and Agiliti

Given the investment horizon of 90 days Icad Inc is expected to under-perform the Agiliti. In addition to that, Icad is 1.37 times more volatile than Agiliti. It trades about -0.04 of its total potential returns per unit of risk. Agiliti is currently generating about 0.02 per unit of volatility. If you would invest  1,640  in Agiliti on July 8, 2022 and sell it today you would earn a total of  0.00  from holding Agiliti or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy74.04%
ValuesDaily Returns

Icad Inc  vs.  Agiliti

 Performance (%) 
       Timeline  
Icad Inc 
Icad Performance
0 of 100
Over the last 90 days Icad Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2022. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Icad Price Channel

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

Icad and Agiliti Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Icad and Agiliti

The main advantage of trading using opposite Icad and Agiliti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Agiliti 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 Agiliti will offset losses from the drop in Agiliti's long position.
Icad vs. General Electric
The idea behind Icad Inc and Agiliti 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.
Agiliti vs. Amazon Inc
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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