Correlation Between Agilon Health and LENZ Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilon Health and LENZ 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 LENZ 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 LENZ Therapeutics, you can compare the effects of market volatilities on Agilon Health and LENZ 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 LENZ Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and LENZ Therapeutics.
Diversification Opportunities for Agilon Health and LENZ Therapeutics
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilon and LENZ is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and LENZ Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENZ 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 LENZ Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENZ Therapeutics has no effect on the direction of Agilon Health i.e., Agilon Health and LENZ Therapeutics go up and down completely randomly.
Pair Corralation between Agilon Health and LENZ Therapeutics
Considering the 90-day investment horizon agilon health is expected to under-perform the LENZ Therapeutics. In addition to that, Agilon Health is 2.7 times more volatile than LENZ Therapeutics. It trades about -0.02 of its total potential returns per unit of risk. LENZ Therapeutics is currently generating about 0.33 per unit of volatility. If you would invest 2,821 in LENZ Therapeutics on August 30, 2024 and sell it today you would earn a total of 909.00 from holding LENZ Therapeutics or generate 32.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. LENZ Therapeutics
Performance |
| Timeline |
| agilon health |
| LENZ Therapeutics |
Agilon Health and LENZ Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and LENZ Therapeutics
The main advantage of trading using opposite Agilon Health and LENZ Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, LENZ 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 LENZ Therapeutics will offset losses from the drop in LENZ Therapeutics' long position.| Agilon Health vs. Humana Inc | Agilon Health vs. Cigna Corp | Agilon Health vs. Elevance Health | Agilon Health vs. Centene Corp |
| LENZ Therapeutics vs. Ikena Oncology | LENZ Therapeutics vs. Eliem Therapeutics | LENZ Therapeutics vs. HCW Biologics | LENZ Therapeutics vs. RenovoRx |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |