Correlation Between Agiliti and HealthStream
Can any of the company-specific risk be diversified away by investing in both Agiliti and HealthStream 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 HealthStream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agiliti and HealthStream, you can compare the effects of market volatilities on Agiliti and HealthStream 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 HealthStream. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agiliti and HealthStream.
Diversification Opportunities for Agiliti and HealthStream
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agiliti and HealthStream is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Agiliti and HealthStream in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HealthStream 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 HealthStream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HealthStream has no effect on the direction of Agiliti i.e., Agiliti and HealthStream go up and down completely randomly.
Pair Corralation between Agiliti and HealthStream
Given the investment horizon of 90 days Agiliti is expected to generate 3.27 times less return on investment than HealthStream. In addition to that, Agiliti is 1.7 times more volatile than HealthStream. It trades about 0.01 of its total potential returns per unit of risk. HealthStream is currently generating about 0.04 per unit of volatility. If you would invest 2,482 in HealthStream on August 28, 2024 and sell it today you would earn a total of 771.00 from holding HealthStream or generate 31.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.72% |
| Values | Daily Returns |
Agiliti vs. HealthStream
Performance |
| Timeline |
| Agiliti |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HealthStream |
Agiliti and HealthStream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agiliti and HealthStream
The main advantage of trading using opposite Agiliti and HealthStream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agiliti position performs unexpectedly, HealthStream 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 HealthStream will offset losses from the drop in HealthStream's long position.The idea behind Agiliti and HealthStream 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.| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare Corp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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