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

-0.06

Correlation Coefficient

Jack Nathan  Agilon Health

Good diversification

The 3 months correlation between Jack and Agilon is -0.06. 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 generate 4.34 times more return on investment than Agilon Health. However, Jack Nathan is 4.34 times more volatile than agilon health. It trades about 0.13 of its potential returns per unit of risk. agilon health is currently generating about 0.32 per unit of risk. If you would invest  0.90  in Jack Nathan Medical on December 28, 2024 and sell it today you would earn a total of  1.70  from holding Jack Nathan Medical or generate 188.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Jack Nathan Medical  vs.  agilon health

Jack Nathan Medical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jack Nathan Medical are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Jack Nathan reported solid returns over the last few months and may actually be approaching a breakup point.

agilon health

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in agilon health are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile technical and fundamental indicators, Agilon Health disclosed solid returns over the last few months and may actually be approaching a breakup point.

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.

The idea behind Jack Nathan Medical 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .