Correlation Between Agilon Health and STAAR Surgical
Can any of the company-specific risk be diversified away by investing in both Agilon Health and STAAR Surgical 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 STAAR Surgical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and STAAR Surgical, you can compare the effects of market volatilities on Agilon Health and STAAR Surgical 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 STAAR Surgical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and STAAR Surgical.
Diversification Opportunities for Agilon Health and STAAR Surgical
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilon and STAAR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and STAAR Surgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAAR Surgical 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 STAAR Surgical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAAR Surgical has no effect on the direction of Agilon Health i.e., Agilon Health and STAAR Surgical go up and down completely randomly.
Pair Corralation between Agilon Health and STAAR Surgical
Considering the 90-day investment horizon agilon health is expected to under-perform the STAAR Surgical. In addition to that, Agilon Health is 1.61 times more volatile than STAAR Surgical. It trades about -0.05 of its total potential returns per unit of risk. STAAR Surgical is currently generating about 0.02 per unit of volatility. If you would invest 2,801 in STAAR Surgical on August 28, 2024 and sell it today you would earn a total of 54.00 from holding STAAR Surgical or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. STAAR Surgical
Performance |
| Timeline |
| agilon health |
| STAAR Surgical |
Agilon Health and STAAR Surgical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and STAAR Surgical
The main advantage of trading using opposite Agilon Health and STAAR Surgical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, STAAR Surgical 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 STAAR Surgical will offset losses from the drop in STAAR Surgical'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 |
| STAAR Surgical vs. ResMed Inc | STAAR Surgical vs. West Pharmaceutical Services | STAAR Surgical vs. ICU Medical | STAAR Surgical vs. Merit Medical Systems |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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