Correlation Between Agilon Health and ProMIS Neurosciences
Can any of the company-specific risk be diversified away by investing in both Agilon Health and ProMIS Neurosciences 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 ProMIS Neurosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and ProMIS Neurosciences, you can compare the effects of market volatilities on Agilon Health and ProMIS Neurosciences 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 ProMIS Neurosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and ProMIS Neurosciences.
Diversification Opportunities for Agilon Health and ProMIS Neurosciences
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and ProMIS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and ProMIS Neurosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProMIS Neurosciences 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 ProMIS Neurosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProMIS Neurosciences has no effect on the direction of Agilon Health i.e., Agilon Health and ProMIS Neurosciences go up and down completely randomly.
Pair Corralation between Agilon Health and ProMIS Neurosciences
Considering the 90-day investment horizon agilon health is expected to generate 2.42 times more return on investment than ProMIS Neurosciences. However, Agilon Health is 2.42 times more volatile than ProMIS Neurosciences. It trades about -0.03 of its potential returns per unit of risk. ProMIS Neurosciences is currently generating about -0.29 per unit of risk. If you would invest 255.00 in agilon health on September 1, 2024 and sell it today you would lose (46.00) from holding agilon health or give up 18.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. ProMIS Neurosciences
Performance |
| Timeline |
| agilon health |
| ProMIS Neurosciences |
Agilon Health and ProMIS Neurosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and ProMIS Neurosciences
The main advantage of trading using opposite Agilon Health and ProMIS Neurosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, ProMIS Neurosciences 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 ProMIS Neurosciences will offset losses from the drop in ProMIS Neurosciences' 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 |
| ProMIS Neurosciences vs. Tff Pharmaceuticals | ProMIS Neurosciences vs. Eliem Therapeutics | ProMIS Neurosciences vs. Inhibrx | ProMIS Neurosciences vs. Enliven Therapeutics |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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