Correlation Between Agilon Health and Alphatec Holdings
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Alphatec Holdings 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 Alphatec Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Alphatec Holdings, you can compare the effects of market volatilities on Agilon Health and Alphatec Holdings 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 Alphatec Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Alphatec Holdings.
Diversification Opportunities for Agilon Health and Alphatec Holdings
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Alphatec is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Alphatec Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphatec Holdings 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 Alphatec Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphatec Holdings has no effect on the direction of Agilon Health i.e., Agilon Health and Alphatec Holdings go up and down completely randomly.
Pair Corralation between Agilon Health and Alphatec Holdings
Considering the 90-day investment horizon agilon health is expected to under-perform the Alphatec Holdings. In addition to that, Agilon Health is 1.18 times more volatile than Alphatec Holdings. It trades about -0.02 of its total potential returns per unit of risk. Alphatec Holdings is currently generating about 0.35 per unit of volatility. If you would invest 527.00 in Alphatec Holdings on August 28, 2024 and sell it today you would earn a total of 435.00 from holding Alphatec Holdings or generate 82.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Alphatec Holdings
Performance |
| Timeline |
| agilon health |
| Alphatec Holdings |
Agilon Health and Alphatec Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Alphatec Holdings
The main advantage of trading using opposite Agilon Health and Alphatec Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Alphatec Holdings 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 Alphatec Holdings will offset losses from the drop in Alphatec Holdings' 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 |
| Alphatec Holdings vs. Globus Medical | Alphatec Holdings vs. Orthofix Medical | Alphatec Holdings vs. CONMED | Alphatec Holdings vs. LivaNova PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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