Correlation Between Assure Holdings and Agilon Health

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

By analyzing existing cross correlation between Assure Holdings Corp and agilon health, you can compare the effects of market volatilities on Assure Holdings 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 Assure Holdings with a short position of Agilon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assure Holdings and Agilon Health.

Diversification Opportunities for Assure Holdings and Agilon Health

0.0

Correlation Coefficient

Assure Holdings  Agilon Health

Pay attention - limited upside

The 3 months correlation between Assure and Agilon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Assure Holdings Corp and agilon health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on agilon health and Assure Holdings 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 Assure Holdings Corp 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 Assure Holdings i.e., Assure Holdings and Agilon Health go up and down completely randomly.

Pair Corralation between Assure Holdings and Agilon Health

Given the investment horizon of 90 days Assure Holdings Corp is expected to under-perform the Agilon Health. In addition to that, Assure Holdings is 2.32 times more volatile than agilon health. It trades about -0.06 of its total potential returns per unit of risk. agilon health is currently generating about -0.07 per unit of volatility. If you would invest  2,050  in agilon health on October 12, 2024 and sell it today you would lose (1,831) from holding agilon health or give up 89.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	76.97%
Values	Daily Returns

Assure Holdings Corp  vs.  agilon health

Assure Holdings Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Assure Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Assure Holdings is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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 February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Assure Holdings and Agilon Health

The main advantage of trading using opposite Assure Holdings and Agilon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assure Holdings 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.

The idea behind Assure Holdings Corp and agilon health 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.