Correlation Between Agilon Health and Sangamo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Sangamo Therapeutics 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 Sangamo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Sangamo Therapeutics, you can compare the effects of market volatilities on Agilon Health and Sangamo Therapeutics 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 Sangamo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Sangamo Therapeutics.
Diversification Opportunities for Agilon Health and Sangamo Therapeutics
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilon and Sangamo is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Sangamo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sangamo Therapeutics 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 Sangamo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sangamo Therapeutics has no effect on the direction of Agilon Health i.e., Agilon Health and Sangamo Therapeutics go up and down completely randomly.
Pair Corralation between Agilon Health and Sangamo Therapeutics
Considering the 90-day investment horizon agilon health is expected to under-perform the Sangamo Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 1.68 times less risky than Sangamo Therapeutics. The stock trades about -0.09 of its potential returns per unit of risk. The Sangamo Therapeutics is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Sangamo Therapeutics on August 24, 2024 and sell it today you would earn a total of 157.00 from holding Sangamo Therapeutics or generate 402.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Sangamo Therapeutics
Performance |
| Timeline |
| agilon health |
| Sangamo Therapeutics |
Agilon Health and Sangamo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Sangamo Therapeutics
The main advantage of trading using opposite Agilon Health and Sangamo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Sangamo Therapeutics 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 Sangamo Therapeutics will offset losses from the drop in Sangamo Therapeutics' long position.| Agilon Health vs. Addus HomeCare | Agilon Health vs. Morningstar Unconstrained Allocation | Agilon Health vs. SEI Investments | Agilon Health vs. Goosehead Insurance |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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