Correlation Between Agilon Health and Assure Holdings
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Assure Holdings 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 Assure Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Assure Holdings Corp, you can compare the effects of market volatilities on Agilon Health and Assure Holdings 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 Assure Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Assure Holdings.
Diversification Opportunities for Agilon Health and Assure Holdings
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agilon and Assure is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Assure Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assure Holdings 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 Assure Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assure Holdings Corp has no effect on the direction of Agilon Health i.e., Agilon Health and Assure Holdings go up and down completely randomly.
Pair Corralation between Agilon Health and Assure Holdings
Considering the 90-day investment horizon agilon health is expected to under-perform the Assure Holdings. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 2.27 times less risky than Assure Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The Assure Holdings Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Assure Holdings Corp on August 31, 2024 and sell it today you would lose (1,752) from holding Assure Holdings Corp or give up 96.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 76.47% |
| Values | Daily Returns |
agilon health vs. Assure Holdings Corp
Performance |
| Timeline |
| agilon health |
| Assure Holdings Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilon Health and Assure Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Assure Holdings
The main advantage of trading using opposite Agilon Health and Assure Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Assure Holdings 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 Assure Holdings will offset losses from the drop in Assure Holdings' 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 |
| Assure Holdings vs. Novo Integrated Sciences | Assure Holdings vs. Aveanna Healthcare Holdings | Assure Holdings vs. P3 Health Partners | Assure Holdings vs. Sonida Senior Living |
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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