Correlation Between Agilon Health and Fennec Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Fennec 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 Fennec 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 Fennec Pharmaceuticals, you can compare the effects of market volatilities on Agilon Health and Fennec 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 Fennec Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Fennec Pharmaceuticals.
Diversification Opportunities for Agilon Health and Fennec Pharmaceuticals
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and Fennec is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Fennec Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fennec 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 Fennec Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fennec Pharmaceuticals has no effect on the direction of Agilon Health i.e., Agilon Health and Fennec Pharmaceuticals go up and down completely randomly.
Pair Corralation between Agilon Health and Fennec Pharmaceuticals
Considering the 90-day investment horizon agilon health is expected to under-perform the Fennec Pharmaceuticals. In addition to that, Agilon Health is 1.45 times more volatile than Fennec Pharmaceuticals. It trades about -0.06 of its total potential returns per unit of risk. Fennec Pharmaceuticals is currently generating about -0.02 per unit of volatility. If you would invest 969.00 in Fennec Pharmaceuticals on August 28, 2024 and sell it today you would lose (403.00) from holding Fennec Pharmaceuticals or give up 41.59% 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. Fennec Pharmaceuticals
Performance |
| Timeline |
| agilon health |
| Fennec Pharmaceuticals |
Agilon Health and Fennec Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Fennec Pharmaceuticals
The main advantage of trading using opposite Agilon Health and Fennec Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Fennec 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 Fennec Pharmaceuticals will offset losses from the drop in Fennec Pharmaceuticals' 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 |
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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..
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