Correlation Between Agilon Health and Ainos

Can any of the company-specific risk be diversified away by investing in both Agilon Health and Ainos 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 Ainos into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between agilon health and Ainos Inc, you can compare the effects of market volatilities on Agilon Health and Ainos 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 Ainos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilon Health and Ainos.

Diversification Opportunities for Agilon Health and Ainos

0.71

Correlation Coefficient

Agilon Health  Ainos

Poor diversification

The 3 months correlation between Agilon and Ainos is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Ainos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ainos Inc 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 Ainos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ainos Inc has no effect on the direction of Agilon Health i.e., Agilon Health and Ainos go up and down completely randomly.

Pair Corralation between Agilon Health and Ainos

Considering the 90-day investment horizon agilon health is expected to under-perform the Ainos. In addition to that, Agilon Health is 1.97 times more volatile than Ainos Inc. It trades about -0.25 of its total potential returns per unit of risk. Ainos Inc is currently generating about -0.07 per unit of volatility. If you would invest  53.00  in Ainos Inc on August 17, 2024 and sell it today you would lose (5.00) from holding Ainos Inc or give up 9.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

agilon health  vs.  Ainos Inc

agilon health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days agilon health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Ainos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ainos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in December 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Agilon Health and Ainos

The main advantage of trading using opposite Agilon Health and Ainos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilon Health position performs unexpectedly, Ainos 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 Ainos will offset losses from the drop in Ainos' long position.

The idea behind agilon health and Ainos Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..