Correlation Between Dynatrace Holdings and Agilysys

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

By analyzing existing cross correlation between Dynatrace Holdings LLC and Agilysys, you can compare the effects of market volatilities on Dynatrace Holdings and Agilysys 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 Dynatrace Holdings with a short position of Agilysys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dynatrace Holdings and Agilysys.

Diversification Opportunities for Dynatrace Holdings and Agilysys

0.78

Correlation Coefficient

Dynatrace Holdings  Agilysys

Poor diversification

The 3 months correlation between Dynatrace and Agilysys is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Dynatrace Holdings LLC and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and Dynatrace Holdings 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 Dynatrace Holdings LLC are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of Dynatrace Holdings i.e., Dynatrace Holdings and Agilysys go up and down completely randomly.

Pair Corralation between Dynatrace Holdings and Agilysys

Allowing for the 90-day total investment horizon Dynatrace Holdings is expected to generate 6.03 times less return on investment than Agilysys. But when comparing it to its historical volatility, Dynatrace Holdings LLC is 1.93 times less risky than Agilysys. It trades about 0.07 of its potential returns per unit of risk. Agilysys is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  7,599  in Agilysys on May 6, 2025 and sell it today you would earn a total of  3,900  from holding Agilysys or generate 51.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Dynatrace Holdings LLC  vs.  Agilysys

Dynatrace Holdings LLC

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dynatrace Holdings LLC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Dynatrace Holdings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Agilysys

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dynatrace Holdings and Agilysys

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

The idea behind Dynatrace Holdings LLC and Agilysys 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.