Correlation Between Agilon Health and Moleculin Biotech
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Moleculin Biotech 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 Moleculin Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Moleculin Biotech, you can compare the effects of market volatilities on Agilon Health and Moleculin Biotech 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 Moleculin Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Moleculin Biotech.
Diversification Opportunities for Agilon Health and Moleculin Biotech
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilon and Moleculin is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Moleculin Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moleculin Biotech 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 Moleculin Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moleculin Biotech has no effect on the direction of Agilon Health i.e., Agilon Health and Moleculin Biotech go up and down completely randomly.
Pair Corralation between Agilon Health and Moleculin Biotech
Considering the 90-day investment horizon agilon health is expected to under-perform the Moleculin Biotech. In addition to that, Agilon Health is 1.56 times more volatile than Moleculin Biotech. It trades about -0.06 of its total potential returns per unit of risk. Moleculin Biotech is currently generating about 0.03 per unit of volatility. If you would invest 262.00 in Moleculin Biotech on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Moleculin Biotech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Moleculin Biotech
Performance |
| Timeline |
| agilon health |
| Moleculin Biotech |
Agilon Health and Moleculin Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Moleculin Biotech
The main advantage of trading using opposite Agilon Health and Moleculin Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Moleculin Biotech 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 Moleculin Biotech will offset losses from the drop in Moleculin Biotech'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 |
| Moleculin Biotech vs. Eliem Therapeutics | Moleculin Biotech vs. Scpharmaceuticals | Moleculin Biotech vs. Milestone Pharmaceuticals | Moleculin Biotech vs. Seres Therapeutics |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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