Correlation Between Agilon Health and Pharvaris
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Pharvaris 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 Pharvaris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Pharvaris BV, you can compare the effects of market volatilities on Agilon Health and Pharvaris 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 Pharvaris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Pharvaris.
Diversification Opportunities for Agilon Health and Pharvaris
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Pharvaris is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Pharvaris BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pharvaris BV 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 Pharvaris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pharvaris BV has no effect on the direction of Agilon Health i.e., Agilon Health and Pharvaris go up and down completely randomly.
Pair Corralation between Agilon Health and Pharvaris
Considering the 90-day investment horizon agilon health is expected to under-perform the Pharvaris. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 1.08 times less risky than Pharvaris. The stock trades about -0.06 of its potential returns per unit of risk. The Pharvaris BV is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 862.00 in Pharvaris BV on August 30, 2024 and sell it today you would earn a total of 1,374 from holding Pharvaris BV or generate 159.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Pharvaris BV
Performance |
| Timeline |
| agilon health |
| Pharvaris BV |
Agilon Health and Pharvaris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Pharvaris
The main advantage of trading using opposite Agilon Health and Pharvaris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Pharvaris 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 Pharvaris will offset losses from the drop in Pharvaris' 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 |
| Pharvaris vs. Bright Minds Biosciences | Pharvaris vs. HP Inc | Pharvaris vs. Intel | Pharvaris vs. Chevron Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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