Correlation Between Agilon Health and Aesthetic Medical
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Aesthetic Medical 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 Agilon Health and Aesthetic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Aesthetic Medical Intl, you can compare the effects of market volatilities on Agilon Health and Aesthetic Medical 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 Agilon Health with a short position of Aesthetic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Aesthetic Medical.
Diversification Opportunities for Agilon Health and Aesthetic Medical
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilon and Aesthetic is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Aesthetic Medical Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aesthetic Medical Intl and Agilon Health 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 agilon health are associated (or correlated) with Aesthetic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aesthetic Medical Intl has no effect on the direction of Agilon Health i.e., Agilon Health and Aesthetic Medical go up and down completely randomly.
Pair Corralation between Agilon Health and Aesthetic Medical
If you would invest 185.00 in agilon health on October 22, 2024 and sell it today you would earn a total of 124.00 from holding agilon health or generate 67.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
agilon health vs. Aesthetic Medical Intl
Performance |
| Timeline |
| agilon health |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilon Health and Aesthetic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Aesthetic Medical
The main advantage of trading using opposite Agilon Health and Aesthetic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Aesthetic Medical 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 Aesthetic Medical will offset losses from the drop in Aesthetic Medical's long position.| Agilon Health vs. The Ensign Group | Agilon Health vs. Universal Health Services | Agilon Health vs. Addus HomeCare | Agilon Health vs. Encompass Health Corp |
| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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