Correlation Between Agilon Health and Xilio Development
Can any of the company-specific risk be diversified away by investing in both Agilon Health and Xilio Development 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 Xilio Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and Xilio Development, you can compare the effects of market volatilities on Agilon Health and Xilio Development 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 Xilio Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Xilio Development.
Diversification Opportunities for Agilon Health and Xilio Development
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilon and Xilio is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Xilio Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilio Development 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 Xilio Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilio Development has no effect on the direction of Agilon Health i.e., Agilon Health and Xilio Development go up and down completely randomly.
Pair Corralation between Agilon Health and Xilio Development
Considering the 90-day investment horizon agilon health is expected to under-perform the Xilio Development. But the stock apears to be less risky and, when comparing its historical volatility, agilon health is 1.03 times less risky than Xilio Development. The stock trades about -0.08 of its potential returns per unit of risk. The Xilio Development is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 81.00 in Xilio Development on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Xilio Development or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. Xilio Development
Performance |
| Timeline |
| agilon health |
| Xilio Development |
Agilon Health and Xilio Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and Xilio Development
The main advantage of trading using opposite Agilon Health and Xilio Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Xilio Development 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 Xilio Development will offset losses from the drop in Xilio Development'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 |
| Xilio Development vs. Connect Biopharma Holdings | Xilio Development vs. Tyra Biosciences | Xilio Development vs. RAPT Therapeutics | Xilio Development vs. Mineralys Therapeutics, Common |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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