Correlation Between Agilon Health and Jack Nathan
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Jack Nathan 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 Jack Nathan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Jack Nathan Medical, you can compare the effects of market volatilities on Agilon Health and Jack Nathan 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 Jack Nathan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Jack Nathan.
Diversification Opportunities for Agilon Health and Jack Nathan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Jack is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Jack Nathan Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack Nathan Medical 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 Jack Nathan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack Nathan Medical has no effect on the direction of Agilon Health i.e., Agilon Health and Jack Nathan go up and down completely randomly.
Pair Corralation between Agilon Health and Jack Nathan
Considering the 90-day investment horizon agilon health is expected to generate 1.36 times more return on investment than Jack Nathan. However, Agilon Health is 1.36 times more volatile than Jack Nathan Medical. It trades about -0.06 of its potential returns per unit of risk. Jack Nathan Medical is currently generating about -0.21 per unit of risk. If you would invest 270.00 in agilon health on August 29, 2024 and sell it today you would lose (65.00) from holding agilon health or give up 24.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Jack Nathan Medical
Performance |
| Timeline |
| agilon health |
| Jack Nathan Medical |
Agilon Health and Jack Nathan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Jack Nathan
The main advantage of trading using opposite Agilon Health and Jack Nathan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Jack Nathan 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 Jack Nathan will offset losses from the drop in Jack Nathan'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 |
| Jack Nathan vs. IMAC Holdings | Jack Nathan vs. HCA Holdings | Jack Nathan vs. HUMANA INC | Jack Nathan vs. SCOR PK |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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