Correlation Between Agilon Health and 908 Devices
Can any of the company-specific risk be diversified away by investing in both Agilon Health and 908 Devices 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 908 Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and 908 Devices, you can compare the effects of market volatilities on Agilon Health and 908 Devices 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 908 Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and 908 Devices.
Diversification Opportunities for Agilon Health and 908 Devices
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agilon and 908 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and 908 Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 908 Devices 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 908 Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 908 Devices has no effect on the direction of Agilon Health i.e., Agilon Health and 908 Devices go up and down completely randomly.
Pair Corralation between Agilon Health and 908 Devices
Considering the 90-day investment horizon agilon health is expected to under-perform the 908 Devices. In addition to that, Agilon Health is 1.03 times more volatile than 908 Devices. It trades about -0.1 of its total potential returns per unit of risk. 908 Devices is currently generating about -0.03 per unit of volatility. If you would invest 709.00 in 908 Devices on August 27, 2024 and sell it today you would lose (453.00) from holding 908 Devices or give up 63.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. 908 Devices
Performance |
| Timeline |
| agilon health |
| 908 Devices |
Agilon Health and 908 Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and 908 Devices
The main advantage of trading using opposite Agilon Health and 908 Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, 908 Devices 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 908 Devices will offset losses from the drop in 908 Devices' long position.The idea behind agilon health and 908 Devices 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.| 908 Devices vs. Heartbeam | 908 Devices vs. EUDA Health Holdings | 908 Devices vs. Nutex Health | 908 Devices vs. Healthcare Triangle |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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