Correlation Between Jack Nathan and Agilon Health
Can any of the company-specific risk be diversified away by investing in both Jack Nathan 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 Jack Nathan and Agilon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Nathan Medical and agilon health, you can compare the effects of market volatilities on Jack Nathan 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 Jack Nathan with a short position of Agilon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Nathan and Agilon Health.
Diversification Opportunities for Jack Nathan and Agilon Health
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jack and Agilon is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jack Nathan Medical and agilon health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on agilon health and Jack Nathan 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 Jack Nathan Medical 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 Jack Nathan i.e., Jack Nathan and Agilon Health go up and down completely randomly.
Pair Corralation between Jack Nathan and Agilon Health
Assuming the 90 days horizon Jack Nathan Medical is expected to under-perform the Agilon Health. But the otc stock apears to be less risky and, when comparing its historical volatility, Jack Nathan Medical is 1.36 times less risky than Agilon Health. The otc stock trades about -0.21 of its potential returns per unit of risk. The agilon health is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 270.00 in agilon health on August 29, 2024 and sell it today you would lose (65.00) from holding agilon health or give up 24.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack Nathan Medical vs. agilon health
Performance |
| Timeline |
| Jack Nathan Medical |
| agilon health |
Jack Nathan and Agilon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Nathan and Agilon Health
The main advantage of trading using opposite Jack Nathan and Agilon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Nathan 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.| Jack Nathan vs. IMAC Holdings | Jack Nathan vs. HCA Holdings | Jack Nathan vs. HUMANA INC | Jack Nathan vs. SCOR PK |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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