Correlation Between Agilon Health and ATI Physical
Can any of the company-specific risk be diversified away by investing in both Agilon Health and ATI Physical 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 ATI Physical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and ATI Physical Therapy, you can compare the effects of market volatilities on Agilon Health and ATI Physical 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 ATI Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and ATI Physical.
Diversification Opportunities for Agilon Health and ATI Physical
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and ATI is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and ATI Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATI Physical Therapy 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 ATI Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATI Physical Therapy has no effect on the direction of Agilon Health i.e., Agilon Health and ATI Physical go up and down completely randomly.
Pair Corralation between Agilon Health and ATI Physical
Considering the 90-day investment horizon agilon health is expected to under-perform the ATI Physical. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 1.1 times less risky than ATI Physical. The stock trades about -0.07 of its potential returns per unit of risk. The ATI Physical Therapy is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,710 in ATI Physical Therapy on August 24, 2024 and sell it today you would lose (1,528) from holding ATI Physical Therapy or give up 89.36% 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. ATI Physical Therapy
Performance |
| Timeline |
| agilon health |
| ATI Physical Therapy |
Agilon Health and ATI Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and ATI Physical
The main advantage of trading using opposite Agilon Health and ATI Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, ATI Physical 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 ATI Physical will offset losses from the drop in ATI Physical's long position.| Agilon Health vs. Addus HomeCare | Agilon Health vs. Morningstar Unconstrained Allocation | Agilon Health vs. SEI Investments | Agilon Health vs. Goosehead Insurance |
| ATI Physical vs. Universal Health Services | ATI Physical vs. Lifestance Health Group | ATI Physical vs. Select Medical Holdings | ATI Physical vs. Acadia Healthcare |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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