Correlation Between Agilon Health and Ontrak
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Ontrak 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 Ontrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Ontrak Inc, you can compare the effects of market volatilities on Agilon Health and Ontrak 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 Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Ontrak.
Diversification Opportunities for Agilon Health and Ontrak
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agilon and Ontrak is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak 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 Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Agilon Health i.e., Agilon Health and Ontrak go up and down completely randomly.
Pair Corralation between Agilon Health and Ontrak
Considering the 90-day investment horizon agilon health is expected to under-perform the Ontrak. In addition to that, Agilon Health is 4.01 times more volatile than Ontrak Inc. It trades about -0.01 of its total potential returns per unit of risk. Ontrak Inc is currently generating about 0.08 per unit of volatility. If you would invest 178.00 in Ontrak Inc on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Ontrak Inc or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Ontrak Inc
Performance |
| Timeline |
| agilon health |
| Ontrak Inc |
Agilon Health and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Ontrak
The main advantage of trading using opposite Agilon Health and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak'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 |
| Ontrak vs. American Well Corp | Ontrak vs. Root Inc | Ontrak vs. Goodrx Holdings | Ontrak vs. Bigcommerce Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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