Correlation Between Agilon Health and Alterity Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Alterity Therapeutics 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 Alterity Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Alterity Therapeutics, you can compare the effects of market volatilities on Agilon Health and Alterity Therapeutics 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 Alterity Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Alterity Therapeutics.
Diversification Opportunities for Agilon Health and Alterity Therapeutics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and Alterity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Alterity Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alterity Therapeutics 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 Alterity Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alterity Therapeutics has no effect on the direction of Agilon Health i.e., Agilon Health and Alterity Therapeutics go up and down completely randomly.
Pair Corralation between Agilon Health and Alterity Therapeutics
Considering the 90-day investment horizon agilon health is expected to under-perform the Alterity Therapeutics. In addition to that, Agilon Health is 4.06 times more volatile than Alterity Therapeutics. It trades about -0.03 of its total potential returns per unit of risk. Alterity Therapeutics is currently generating about -0.08 per unit of volatility. If you would invest 115.00 in Alterity Therapeutics on September 1, 2024 and sell it today you would lose (6.00) from holding Alterity Therapeutics or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Alterity Therapeutics
Performance |
| Timeline |
| agilon health |
| Alterity Therapeutics |
Agilon Health and Alterity Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Alterity Therapeutics
The main advantage of trading using opposite Agilon Health and Alterity Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Alterity Therapeutics 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 Alterity Therapeutics will offset losses from the drop in Alterity Therapeutics' 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 |
| Alterity Therapeutics vs. Tff Pharmaceuticals | Alterity Therapeutics vs. Eliem Therapeutics | Alterity Therapeutics vs. Inhibrx | Alterity Therapeutics vs. Enliven Therapeutics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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