Correlation Between Agilon Health and Pennant
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Pennant 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 Pennant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Pennant Group, you can compare the effects of market volatilities on Agilon Health and Pennant 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 Pennant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Pennant.
Diversification Opportunities for Agilon Health and Pennant
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agilon and Pennant is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Pennant Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pennant Group 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 Pennant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pennant Group has no effect on the direction of Agilon Health i.e., Agilon Health and Pennant go up and down completely randomly.
Pair Corralation between Agilon Health and Pennant
Considering the 90-day investment horizon agilon health is expected to generate 2.57 times more return on investment than Pennant. However, Agilon Health is 2.57 times more volatile than Pennant Group. It trades about 0.62 of its potential returns per unit of risk. Pennant Group is currently generating about 0.07 per unit of risk. If you would invest 185.00 in agilon health on October 23, 2024 and sell it today you would earn a total of 152.00 from holding agilon health or generate 82.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
agilon health vs. Pennant Group
Performance |
| Timeline |
| agilon health |
| Pennant Group |
Agilon Health and Pennant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Pennant
The main advantage of trading using opposite Agilon Health and Pennant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Pennant 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 Pennant will offset losses from the drop in Pennant'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 |
| Pennant vs. Encompass Health Corp | Pennant vs. Acadia Healthcare | Pennant vs. Select Medical Holdings | Pennant vs. Addus HomeCare |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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