Correlation Between Phreesia and Agiliti

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

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

Diversification Opportunities for Phreesia and Agiliti

-0.49

Correlation Coefficient

Phreesia  Agiliti

Very good diversification

The 3 months correlation between Phreesia and Agiliti is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Phreesia and Agiliti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agiliti and Phreesia 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 Phreesia 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 Phreesia i.e., Phreesia and Agiliti go up and down completely randomly.

Pair Corralation between Phreesia and Agiliti

Considering the 90-day investment horizon Phreesia is expected to under-perform the Agiliti. In addition to that, Phreesia is 8.25 times more volatile than Agiliti. It trades about -0.04 of its total potential returns per unit of risk. Agiliti is currently generating about 0.08 per unit of volatility. If you would invest  994.00  in Agiliti on March 14, 2024 and sell it today you would earn a total of  11.00  from holding Agiliti or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	60.32%
Values	Daily Returns

Phreesia  vs.  Agiliti

Phreesia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Phreesia has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's technical indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Agiliti

Risk-Adjusted Performance

0 of 100

Modest

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.

Pair Trading with Phreesia and Agiliti

The main advantage of trading using opposite Phreesia and Agiliti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phreesia 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.

The idea behind Phreesia 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.