Correlation Between Aesthetic Medical and Agilon Health
Can any of the company-specific risk be diversified away by investing in both Aesthetic Medical and Agilon 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 Aesthetic Medical and Agilon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesthetic Medical Intl and agilon health, you can compare the effects of market volatilities on Aesthetic Medical and Agilon 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 Aesthetic Medical with a short position of Agilon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesthetic Medical and Agilon Health.
Diversification Opportunities for Aesthetic Medical and Agilon Health
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aesthetic and Agilon is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aesthetic Medical Intl and agilon health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on agilon health and Aesthetic Medical 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 Aesthetic Medical Intl are associated (or correlated) with Agilon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of agilon health has no effect on the direction of Aesthetic Medical i.e., Aesthetic Medical and Agilon Health go up and down completely randomly.
Pair Corralation between Aesthetic Medical and Agilon Health
If you would invest 32.00 in Aesthetic Medical Intl on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Aesthetic Medical Intl or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aesthetic Medical Intl vs. agilon health
Performance |
| Timeline |
| Aesthetic Medical Intl |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| agilon health |
Aesthetic Medical and Agilon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesthetic Medical and Agilon Health
The main advantage of trading using opposite Aesthetic Medical and Agilon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesthetic Medical position performs unexpectedly, Agilon 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 Agilon Health will offset losses from the drop in Agilon Health's long position.| Aesthetic Medical vs. Jack Nathan Medical | Aesthetic Medical vs. Medical Facilities | Aesthetic Medical vs. Fresenius SE Co | Aesthetic Medical vs. Ramsay Health Care |
| Agilon Health vs. The Ensign Group | Agilon Health vs. Universal Health Services | Agilon Health vs. Addus HomeCare | Agilon Health vs. Encompass Health Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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