Correlation Between Agilon Health and Fresenius
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Fresenius 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 Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Fresenius SE Co, you can compare the effects of market volatilities on Agilon Health and Fresenius 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 Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Fresenius.
Diversification Opportunities for Agilon Health and Fresenius
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agilon and Fresenius is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE 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 Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Agilon Health i.e., Agilon Health and Fresenius go up and down completely randomly.
Pair Corralation between Agilon Health and Fresenius
Considering the 90-day investment horizon agilon health is expected to under-perform the Fresenius. In addition to that, Agilon Health is 8.08 times more volatile than Fresenius SE Co. It trades about -0.03 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about -0.12 per unit of volatility. If you would invest 917.00 in Fresenius SE Co on September 1, 2024 and sell it today you would lose (34.00) from holding Fresenius SE Co or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Fresenius SE Co
Performance |
| Timeline |
| agilon health |
| Fresenius SE |
Agilon Health and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Fresenius
The main advantage of trading using opposite Agilon Health and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Fresenius 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 Fresenius will offset losses from the drop in Fresenius' 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 |
| Fresenius vs. Jack Nathan Medical | Fresenius vs. Medical Facilities | Fresenius vs. Ramsay Health Care | Fresenius vs. Nova Leap Health |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |