Correlation Between Agilon Health and Ensign
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Ensign 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 Ensign into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and The Ensign Group, you can compare the effects of market volatilities on Agilon Health and Ensign 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 Ensign. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Ensign.
Diversification Opportunities for Agilon Health and Ensign
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilon and Ensign is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and The Ensign Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Group 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 Ensign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Group has no effect on the direction of Agilon Health i.e., Agilon Health and Ensign go up and down completely randomly.
Pair Corralation between Agilon Health and Ensign
Considering the 90-day investment horizon agilon health is expected to under-perform the Ensign. In addition to that, Agilon Health is 5.12 times more volatile than The Ensign Group. It trades about -0.02 of its total potential returns per unit of risk. The Ensign Group is currently generating about -0.09 per unit of volatility. If you would invest 15,187 in The Ensign Group on August 27, 2024 and sell it today you would lose (667.00) from holding The Ensign Group or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. The Ensign Group
Performance |
| Timeline |
| agilon health |
| Ensign Group |
Agilon Health and Ensign Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Ensign
The main advantage of trading using opposite Agilon Health and Ensign positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Ensign 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 Ensign will offset losses from the drop in Ensign's 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 |
| Ensign vs. Enhabit | Ensign vs. Pennant Group | Ensign vs. InnovAge Holding Corp | Ensign vs. National 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |