Correlation Between Ensign and Agilon Health
Can any of the company-specific risk be diversified away by investing in both Ensign 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 Ensign and Agilon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Ensign Group and agilon health, you can compare the effects of market volatilities on Ensign 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 Ensign with a short position of Agilon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ensign and Agilon Health.
Diversification Opportunities for Ensign and Agilon Health
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ensign and Agilon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Ensign Group and agilon health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on agilon health and Ensign 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 The Ensign Group 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 Ensign i.e., Ensign and Agilon Health go up and down completely randomly.
Pair Corralation between Ensign and Agilon Health
Given the investment horizon of 90 days The Ensign Group is expected to generate 0.21 times more return on investment than Agilon Health. However, The Ensign Group is 4.67 times less risky than Agilon Health. It trades about -0.09 of its potential returns per unit of risk. agilon health is currently generating about -0.11 per unit of risk. If you would invest 15,187 in The Ensign Group on August 27, 2024 and sell it today you would lose (667.00) from holding The Ensign Group or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Ensign Group vs. agilon health
Performance |
| Timeline |
| Ensign Group |
| agilon health |
Ensign and Agilon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ensign and Agilon Health
The main advantage of trading using opposite Ensign and Agilon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ensign 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.| Ensign vs. Enhabit | Ensign vs. Pennant Group | Ensign vs. InnovAge Holding Corp | Ensign vs. National HealthCare |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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