Correlation Between Agiliti and Privia Health

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

By analyzing existing cross correlation between Agiliti and Privia Health Group, you can compare the effects of market volatilities on Agiliti and Privia Health 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 Privia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agiliti and Privia Health.

Diversification Opportunities for Agiliti and Privia Health

0.35

Correlation Coefficient

Agiliti  Privia Health

Weak diversification

The 3 months correlation between Agiliti and Privia is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agiliti and Privia Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Privia Health Group 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 Privia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Privia Health Group has no effect on the direction of Agiliti i.e., Agiliti and Privia Health go up and down completely randomly.

Pair Corralation between Agiliti and Privia Health

If you would invest  1,689  in Agiliti on July 26, 2024 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 Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Agiliti  vs.  Privia Health Group

Agiliti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agiliti has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Agiliti is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Privia Health Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Privia Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Agiliti and Privia Health

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

The idea behind Agiliti and Privia Health Group 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.