Correlation Between Agilon Health and Cross Country
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Cross Country 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 Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Cross Country Healthcare, you can compare the effects of market volatilities on Agilon Health and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Cross Country.
Diversification Opportunities for Agilon Health and Cross Country
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Agilon and Cross is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Agilon Health i.e., Agilon Health and Cross Country go up and down completely randomly.
Pair Corralation between Agilon Health and Cross Country
Considering the 90-day investment horizon agilon health is expected to under-perform the Cross Country. In addition to that, Agilon Health is 2.16 times more volatile than Cross Country Healthcare. It trades about -0.13 of its total potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.11 per unit of volatility. If you would invest 1,184 in Cross Country Healthcare on August 24, 2024 and sell it today you would lose (150.00) from holding Cross Country Healthcare or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Cross Country Healthcare
Performance |
| Timeline |
| agilon health |
| Cross Country Healthcare |
Agilon Health and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Cross Country
The main advantage of trading using opposite Agilon Health and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Agilon Health vs. Addus HomeCare | Agilon Health vs. Morningstar Unconstrained Allocation | Agilon Health vs. SEI Investments | Agilon Health vs. Goosehead Insurance |
| Cross Country vs. ASGN Inc | Cross Country vs. Kforce Inc | Cross Country vs. Kelly Services A | Cross Country vs. AMN Healthcare Services |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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