Correlation Between Agilon Health and Glaukos Corp
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Glaukos Corp 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 Glaukos Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Glaukos Corp, you can compare the effects of market volatilities on Agilon Health and Glaukos Corp 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 Glaukos Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Glaukos Corp.
Diversification Opportunities for Agilon Health and Glaukos Corp
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Glaukos is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Glaukos Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glaukos Corp 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 Glaukos Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glaukos Corp has no effect on the direction of Agilon Health i.e., Agilon Health and Glaukos Corp go up and down completely randomly.
Pair Corralation between Agilon Health and Glaukos Corp
Considering the 90-day investment horizon agilon health is expected to under-perform the Glaukos Corp. In addition to that, Agilon Health is 3.59 times more volatile than Glaukos Corp. It trades about -0.02 of its total potential returns per unit of risk. Glaukos Corp is currently generating about 0.11 per unit of volatility. If you would invest 13,408 in Glaukos Corp on August 28, 2024 and sell it today you would earn a total of 886.00 from holding Glaukos Corp or generate 6.61% 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. Glaukos Corp
Performance |
| Timeline |
| agilon health |
| Glaukos Corp |
Agilon Health and Glaukos Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Glaukos Corp
The main advantage of trading using opposite Agilon Health and Glaukos Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Glaukos Corp 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 Glaukos Corp will offset losses from the drop in Glaukos Corp'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 |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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