Correlation Between Agilon Health and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Ramsay Health 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 Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Ramsay Health Care, you can compare the effects of market volatilities on Agilon Health and Ramsay Health 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 Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Ramsay Health.
Diversification Opportunities for Agilon Health and Ramsay Health
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilon and Ramsay is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of Agilon Health i.e., Agilon Health and Ramsay Health go up and down completely randomly.
Pair Corralation between Agilon Health and Ramsay Health
Considering the 90-day investment horizon agilon health is expected to generate 3.28 times more return on investment than Ramsay Health. However, Agilon Health is 3.28 times more volatile than Ramsay Health Care. It trades about -0.03 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.09 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Ramsay Health Care
Performance |
| Timeline |
| agilon health |
| Ramsay Health Care |
Agilon Health and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Ramsay Health
The main advantage of trading using opposite Agilon Health and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health'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 |
| Ramsay Health vs. Medical Facilities | Ramsay Health vs. Fresenius SE Co | Ramsay Health vs. Jack Nathan Medical | Ramsay Health vs. Nova Leap Health |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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