Correlation Between Agiliti and R1 RCM
Can any of the company-specific risk be diversified away by investing in both Agiliti and R1 RCM 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 R1 RCM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agiliti and R1 RCM Inc, you can compare the effects of market volatilities on Agiliti and R1 RCM 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 R1 RCM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agiliti and R1 RCM.
Diversification Opportunities for Agiliti and R1 RCM
Good diversification
The 3 months correlation between Agiliti and RCM is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Agiliti and R1 RCM Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on R1 RCM Inc 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 R1 RCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of R1 RCM Inc has no effect on the direction of Agiliti i.e., Agiliti and R1 RCM go up and down completely randomly.
Pair Corralation between Agiliti and R1 RCM
Given the investment horizon of 90 days Agiliti is expected to generate 0.8 times more return on investment than R1 RCM. However, Agiliti is 1.25 times less risky than R1 RCM. It trades about 0.01 of its potential returns per unit of risk. R1 RCM Inc is currently generating about 0.0 per unit of risk. If you would invest 1,687 in Agiliti on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Agiliti or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 13.92% |
| Values | Daily Returns |
Agiliti vs. R1 RCM Inc
Performance |
| Timeline |
| Agiliti |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| R1 RCM Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Agiliti and R1 RCM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agiliti and R1 RCM
The main advantage of trading using opposite Agiliti and R1 RCM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agiliti position performs unexpectedly, R1 RCM 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 R1 RCM will offset losses from the drop in R1 RCM's long position.The idea behind Agiliti and R1 RCM Inc 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.| R1 RCM vs. National Research Corp | R1 RCM vs. Definitive Healthcare Corp | R1 RCM vs. HealthStream | R1 RCM vs. Evolent Health |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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