Correlation Between Agilon Health and Myomo
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Myomo 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 Myomo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Myomo Inc, you can compare the effects of market volatilities on Agilon Health and Myomo 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 Myomo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Myomo.
Diversification Opportunities for Agilon Health and Myomo
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Myomo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Myomo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Myomo Inc 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 Myomo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Myomo Inc has no effect on the direction of Agilon Health i.e., Agilon Health and Myomo go up and down completely randomly.
Pair Corralation between Agilon Health and Myomo
Considering the 90-day investment horizon agilon health is expected to under-perform the Myomo. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 1.28 times less risky than Myomo. The stock trades about -0.09 of its potential returns per unit of risk. The Myomo Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Myomo Inc on August 31, 2024 and sell it today you would earn a total of 516.00 from holding Myomo Inc or generate 1121.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Myomo Inc
Performance |
| Timeline |
| agilon health |
| Myomo Inc |
Agilon Health and Myomo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Myomo
The main advantage of trading using opposite Agilon Health and Myomo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Myomo 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 Myomo will offset losses from the drop in Myomo'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 |
| Myomo vs. SINTX Technologies | Myomo vs. ReShape Lifesciences | Myomo vs. Bone Biologics Corp | Myomo vs. Tivic Health Systems |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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