Correlation Between Agilon Health and Novo Integrated
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Novo Integrated 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 Novo Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Novo Integrated Sciences, you can compare the effects of market volatilities on Agilon Health and Novo Integrated 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 Novo Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Novo Integrated.
Diversification Opportunities for Agilon Health and Novo Integrated
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and Novo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Novo Integrated Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novo Integrated Sciences 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 Novo Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novo Integrated Sciences has no effect on the direction of Agilon Health i.e., Agilon Health and Novo Integrated go up and down completely randomly.
Pair Corralation between Agilon Health and Novo Integrated
Considering the 90-day investment horizon agilon health is expected to generate 0.37 times more return on investment than Novo Integrated. However, agilon health is 2.67 times less risky than Novo Integrated. It trades about -0.05 of its potential returns per unit of risk. Novo Integrated Sciences is currently generating about -0.15 per unit of risk. If you would invest 315.00 in agilon health on September 5, 2024 and sell it today you would lose (92.00) from holding agilon health or give up 29.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.67% |
| Values | Daily Returns |
agilon health vs. Novo Integrated Sciences
Performance |
| Timeline |
| agilon health |
| Novo Integrated Sciences |
Agilon Health and Novo Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Novo Integrated
The main advantage of trading using opposite Agilon Health and Novo Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Novo Integrated 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 Novo Integrated will offset losses from the drop in Novo Integrated's long position.| Agilon Health vs. Humana Inc | Agilon Health vs. Elevance Health | Agilon Health vs. UnitedHealth Group Incorporated | Agilon Health vs. Molina Healthcare |
| Novo Integrated vs. Aveanna Healthcare Holdings | Novo Integrated vs. P3 Health Partners | Novo Integrated vs. IMAC Holdings | Novo Integrated vs. Oncology Institute |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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