Correlation Between Agilon Health and Karyopharm Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Karyopharm Therapeutics 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 Karyopharm Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Karyopharm Therapeutics, you can compare the effects of market volatilities on Agilon Health and Karyopharm Therapeutics 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 Karyopharm Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Karyopharm Therapeutics.
Diversification Opportunities for Agilon Health and Karyopharm Therapeutics
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilon and Karyopharm is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Karyopharm Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karyopharm Therapeutics 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 Karyopharm Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karyopharm Therapeutics has no effect on the direction of Agilon Health i.e., Agilon Health and Karyopharm Therapeutics go up and down completely randomly.
Pair Corralation between Agilon Health and Karyopharm Therapeutics
Considering the 90-day investment horizon agilon health is expected to under-perform the Karyopharm Therapeutics. In addition to that, Agilon Health is 1.64 times more volatile than Karyopharm Therapeutics. It trades about -0.13 of its total potential returns per unit of risk. Karyopharm Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest 82.00 in Karyopharm Therapeutics on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Karyopharm Therapeutics or generate 3.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Karyopharm Therapeutics
Performance |
| Timeline |
| agilon health |
| Karyopharm Therapeutics |
Agilon Health and Karyopharm Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Karyopharm Therapeutics
The main advantage of trading using opposite Agilon Health and Karyopharm Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Karyopharm Therapeutics 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 Karyopharm Therapeutics will offset losses from the drop in Karyopharm Therapeutics' long position.The idea behind agilon health and Karyopharm Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Karyopharm Therapeutics vs. X4 Pharmaceuticals | Karyopharm Therapeutics vs. Hookipa Pharma | Karyopharm Therapeutics vs. Mereo BioPharma Group | Karyopharm Therapeutics vs. Acumen Pharmaceuticals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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