Correlation Between Agilon Health and JIN MEDICAL
Can any of the company-specific risk be diversified away by investing in both Agilon Health and JIN MEDICAL 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 JIN MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between agilon health and JIN MEDICAL INTERNATIONAL, you can compare the effects of market volatilities on Agilon Health and JIN MEDICAL 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 JIN MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and JIN MEDICAL.
Diversification Opportunities for Agilon Health and JIN MEDICAL
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Agilon and JIN is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and JIN MEDICAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIN MEDICAL INTERNATIONAL 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 JIN MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIN MEDICAL INTERNATIONAL has no effect on the direction of Agilon Health i.e., Agilon Health and JIN MEDICAL go up and down completely randomly.
Pair Corralation between Agilon Health and JIN MEDICAL
Considering the 90-day investment horizon agilon health is expected to generate 1.59 times more return on investment than JIN MEDICAL. However, Agilon Health is 1.59 times more volatile than JIN MEDICAL INTERNATIONAL. It trades about -0.02 of its potential returns per unit of risk. JIN MEDICAL INTERNATIONAL is currently generating about -0.44 per unit of risk. If you would invest 252.00 in agilon health on August 30, 2024 and sell it today you would lose (41.00) from holding agilon health or give up 16.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
agilon health vs. JIN MEDICAL INTERNATIONAL
Performance |
| Timeline |
| agilon health |
| JIN MEDICAL INTERNATIONAL |
Agilon Health and JIN MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilon Health and JIN MEDICAL
The main advantage of trading using opposite Agilon Health and JIN MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, JIN MEDICAL 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 JIN MEDICAL will offset losses from the drop in JIN MEDICAL's long position.| Agilon Health vs. Humana Inc | Agilon Health vs. Cigna Corp | Agilon Health vs. Elevance Health | Agilon Health vs. Centene Corp |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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