Correlation Between Agilon Health and Akoya Biosciences

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

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

Diversification Opportunities for Agilon Health and Akoya Biosciences

-0.76

Correlation Coefficient

Agilon Health  Akoya Biosciences

Pay attention - limited upside

The 3 months correlation between Agilon and Akoya is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Akoya Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoya Biosciences 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 Akoya Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoya Biosciences has no effect on the direction of Agilon Health i.e., Agilon Health and Akoya Biosciences go up and down completely randomly.

Pair Corralation between Agilon Health and Akoya Biosciences

Considering the 90-day investment horizon agilon health is expected to under-perform the Akoya Biosciences. In addition to that, Agilon Health is 1.1 times more volatile than Akoya Biosciences. It trades about -0.08 of its total potential returns per unit of risk. Akoya Biosciences is currently generating about -0.04 per unit of volatility. If you would invest  596.00  in Akoya Biosciences on August 14, 2024 and sell it today you would lose (274.00) from holding Akoya Biosciences or give up 45.97% of portfolio value over 90 days.

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

agilon health  vs.  Akoya Biosciences

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.

Akoya Biosciences

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Akoya Biosciences are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Akoya Biosciences sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilon Health and Akoya Biosciences

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

The idea behind agilon health and Akoya Biosciences 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.