Correlation Between Agilon Health and Enanta Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Enanta Pharmaceuticals 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 Enanta Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Enanta Pharmaceuticals, you can compare the effects of market volatilities on Agilon Health and Enanta Pharmaceuticals 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 Enanta Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Enanta Pharmaceuticals.
Diversification Opportunities for Agilon Health and Enanta Pharmaceuticals
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and Enanta is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Enanta Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enanta Pharmaceuticals 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 Enanta Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enanta Pharmaceuticals has no effect on the direction of Agilon Health i.e., Agilon Health and Enanta Pharmaceuticals go up and down completely randomly.
Pair Corralation between Agilon Health and Enanta Pharmaceuticals
Considering the 90-day investment horizon agilon health is expected to under-perform the Enanta Pharmaceuticals. In addition to that, Agilon Health is 1.33 times more volatile than Enanta Pharmaceuticals. It trades about -0.06 of its total potential returns per unit of risk. Enanta Pharmaceuticals is currently generating about -0.07 per unit of volatility. If you would invest 4,170 in Enanta Pharmaceuticals on August 30, 2024 and sell it today you would lose (3,287) from holding Enanta Pharmaceuticals or give up 78.82% 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. Enanta Pharmaceuticals
Performance |
| Timeline |
| agilon health |
| Enanta Pharmaceuticals |
Agilon Health and Enanta Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Enanta Pharmaceuticals
The main advantage of trading using opposite Agilon Health and Enanta Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Enanta Pharmaceuticals 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 Enanta Pharmaceuticals will offset losses from the drop in Enanta Pharmaceuticals' long position.| Agilon Health vs. Humana Inc | Agilon Health vs. Cigna Corp | Agilon Health vs. Elevance Health | Agilon Health vs. Centene Corp |
| Enanta Pharmaceuticals vs. Monte Rosa Therapeutics | Enanta Pharmaceuticals vs. Design Therapeutics | Enanta Pharmaceuticals vs. Werewolf Therapeutics | Enanta Pharmaceuticals vs. Ikena Oncology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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