Correlation Between Agilon Health and DexCom
Can any of the company-specific risk be diversified away by investing in both Agilon Health and DexCom 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 DexCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and DexCom Inc, you can compare the effects of market volatilities on Agilon Health and DexCom 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 DexCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and DexCom.
Diversification Opportunities for Agilon Health and DexCom
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and DexCom is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and DexCom Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DexCom Inc 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 DexCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DexCom Inc has no effect on the direction of Agilon Health i.e., Agilon Health and DexCom go up and down completely randomly.
Pair Corralation between Agilon Health and DexCom
Considering the 90-day investment horizon agilon health is expected to under-perform the DexCom. In addition to that, Agilon Health is 3.9 times more volatile than DexCom Inc. It trades about -0.12 of its total potential returns per unit of risk. DexCom Inc is currently generating about 0.17 per unit of volatility. If you would invest 6,704 in DexCom Inc on August 30, 2024 and sell it today you would earn a total of 1,106 from holding DexCom Inc or generate 16.5% 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. DexCom Inc
Performance |
| Timeline |
| agilon health |
| DexCom Inc |
Agilon Health and DexCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and DexCom
The main advantage of trading using opposite Agilon Health and DexCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, DexCom 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 DexCom will offset losses from the drop in DexCom's long position.| Agilon Health vs. Humana Inc | Agilon Health vs. Cigna Corp | Agilon Health vs. Elevance Health | Agilon Health vs. Centene Corp |
| DexCom vs. Tandem Diabetes Care | DexCom vs. Inspire Medical Systems | DexCom vs. Penumbra | DexCom vs. Insulet |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |