Correlation Between Sprinklr and Agilysys

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

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

Diversification Opportunities for Sprinklr and Agilysys

-0.33

Correlation Coefficient

Sprinklr  Agilysys

Very good diversification

The 3 months correlation between Sprinklr and Agilysys is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Sprinklr and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and Sprinklr 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 Sprinklr 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 Sprinklr i.e., Sprinklr and Agilysys go up and down completely randomly.

Pair Corralation between Sprinklr and Agilysys

Considering the 90-day investment horizon Sprinklr is expected to under-perform the Agilysys. In addition to that, Sprinklr is 1.03 times more volatile than Agilysys. It trades about -0.34 of its total potential returns per unit of risk. Agilysys is currently generating about 0.09 per unit of volatility. If you would invest  7,912  in Agilysys on January 20, 2024 and sell it today you would earn a total of  263.00  from holding Agilysys or generate 3.32% return on investment over 90 days.

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

Sprinklr  vs.  Agilysys

Sprinklr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sprinklr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Agilysys

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agilysys has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Agilysys is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sprinklr and Agilysys

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

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.