Correlation Between Agilon Health and Lucid Diagnostics
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Lucid Diagnostics 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 Lucid Diagnostics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Lucid Diagnostics, you can compare the effects of market volatilities on Agilon Health and Lucid Diagnostics 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 Lucid Diagnostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Lucid Diagnostics.
Diversification Opportunities for Agilon Health and Lucid Diagnostics
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilon and Lucid is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Lucid Diagnostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Diagnostics 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 Lucid Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Diagnostics has no effect on the direction of Agilon Health i.e., Agilon Health and Lucid Diagnostics go up and down completely randomly.
Pair Corralation between Agilon Health and Lucid Diagnostics
Considering the 90-day investment horizon agilon health is expected to under-perform the Lucid Diagnostics. In addition to that, Agilon Health is 1.26 times more volatile than Lucid Diagnostics. It trades about -0.07 of its total potential returns per unit of risk. Lucid Diagnostics is currently generating about -0.02 per unit of volatility. If you would invest 197.00 in Lucid Diagnostics on August 24, 2024 and sell it today you would lose (97.00) from holding Lucid Diagnostics or give up 49.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Lucid Diagnostics
Performance |
| Timeline |
| agilon health |
| Lucid Diagnostics |
Agilon Health and Lucid Diagnostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Lucid Diagnostics
The main advantage of trading using opposite Agilon Health and Lucid Diagnostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Lucid Diagnostics 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 Lucid Diagnostics will offset losses from the drop in Lucid Diagnostics' long position.| Agilon Health vs. Addus HomeCare | Agilon Health vs. Morningstar Unconstrained Allocation | Agilon Health vs. SEI Investments | Agilon Health vs. Goosehead Insurance |
| Lucid Diagnostics vs. Inari Medical | Lucid Diagnostics vs. Beyond Air | Lucid Diagnostics vs. Clearpoint Neuro | Lucid Diagnostics vs. LivaNova PLC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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