Correlation Between Agilon Health and Pro Dex
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Pro Dex 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 Pro Dex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Pro Dex, you can compare the effects of market volatilities on Agilon Health and Pro Dex 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 Pro Dex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Pro Dex.
Diversification Opportunities for Agilon Health and Pro Dex
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilon and Pro is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Pro Dex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro Dex 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 Pro Dex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro Dex has no effect on the direction of Agilon Health i.e., Agilon Health and Pro Dex go up and down completely randomly.
Pair Corralation between Agilon Health and Pro Dex
Considering the 90-day investment horizon agilon health is expected to under-perform the Pro Dex. In addition to that, Agilon Health is 1.34 times more volatile than Pro Dex. It trades about -0.15 of its total potential returns per unit of risk. Pro Dex is currently generating about 0.23 per unit of volatility. If you would invest 2,830 in Pro Dex on August 26, 2024 and sell it today you would earn a total of 1,845 from holding Pro Dex or generate 65.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Pro Dex
Performance |
| Timeline |
| agilon health |
| Pro Dex |
Agilon Health and Pro Dex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Pro Dex
The main advantage of trading using opposite Agilon Health and Pro Dex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Pro Dex 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 Pro Dex will offset losses from the drop in Pro Dex's long position.The idea behind agilon health and Pro Dex 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.| Pro Dex vs. Coloplast A | Pro Dex vs. Straumann Holding AG | Pro Dex vs. Nephros | Pro Dex vs. InfuSystems 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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