Correlation Between Workiva and Agilysys

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Can any of the company-specific risk be diversified away by investing in both Workiva 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 Workiva and Agilysys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workiva and Agilysys, you can compare the effects of market volatilities on Workiva 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 Workiva with a short position of Agilysys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workiva and Agilysys.

Diversification Opportunities for Workiva and Agilysys

0.39
  Correlation Coefficient

Weak diversification

The 3 months correlation between Workiva and Agilysys is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and Workiva 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 Workiva 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 Workiva i.e., Workiva and Agilysys go up and down completely randomly.

Pair Corralation between Workiva and Agilysys

Allowing for the 90-day total investment horizon Workiva is expected to under-perform the Agilysys. In addition to that, Workiva is 1.12 times more volatile than Agilysys. It trades about -0.07 of its total potential returns per unit of risk. Agilysys is currently generating about -0.04 per unit of volatility. If you would invest  8,197  in Agilysys on December 2, 2023 and sell it today you would lose (417.00) from holding Agilysys or give up 5.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Workiva  vs.  Agilysys

 Performance 
       Timeline  
Workiva 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Workiva has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in April 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
Agilysys 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Workiva and Agilysys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Workiva and Agilysys

The main advantage of trading using opposite Workiva and Agilysys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workiva 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 Workiva 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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