Correlation Between National Research and Agiliti

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

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

Diversification Opportunities for National Research and Agiliti

0.0

Correlation Coefficient

National Research  Agiliti

Pay attention - limited upside

The 3 months correlation between National and Agiliti is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Research Corp and Agiliti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agiliti and National Research 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 National Research Corp 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 National Research i.e., National Research and Agiliti go up and down completely randomly.

Pair Corralation between National Research and Agiliti

If you would invest (100.00) in Agiliti on November 29, 2024 and sell it today you would earn a total of  100.00  from holding Agiliti or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

National Research Corp  vs.  Agiliti

National Research Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Research Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Agiliti

Risk-Adjusted Performance

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.

Pair Trading with National Research and Agiliti

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

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.