Correlation Between Agilon Health and Allakos
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Allakos 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 Allakos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Allakos, you can compare the effects of market volatilities on Agilon Health and Allakos 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 Allakos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Allakos.
Diversification Opportunities for Agilon Health and Allakos
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilon and Allakos is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Allakos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allakos 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 Allakos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allakos has no effect on the direction of Agilon Health i.e., Agilon Health and Allakos go up and down completely randomly.
Pair Corralation between Agilon Health and Allakos
Considering the 90-day investment horizon agilon health is expected to generate 1.83 times more return on investment than Allakos. However, Agilon Health is 1.83 times more volatile than Allakos. It trades about -0.03 of its potential returns per unit of risk. Allakos is currently generating about -0.12 per unit of risk. If you would invest 255.00 in agilon health on September 1, 2024 and sell it today you would lose (46.00) from holding agilon health or give up 18.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
agilon health vs. Allakos
Performance |
| Timeline |
| agilon health |
| Allakos |
Agilon Health and Allakos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Allakos
The main advantage of trading using opposite Agilon Health and Allakos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Allakos 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 Allakos will offset losses from the drop in Allakos' 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 |
| Allakos vs. Apellis Pharmaceuticals | Allakos vs. Blueprint Medicines Corp | Allakos vs. Day One Biopharmaceuticals | Allakos vs. Atara Biotherapeutics |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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