Correlation Between Agilon Health and Teladoc

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

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

Diversification Opportunities for Agilon Health and Teladoc

-0.61

Correlation Coefficient

Agilon Health  Teladoc

Excellent diversification

The 3 months correlation between Agilon and Teladoc is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding agilon health and Teladoc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teladoc 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 Teladoc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teladoc has no effect on the direction of Agilon Health i.e., Agilon Health and Teladoc go up and down completely randomly.

Pair Corralation between Agilon Health and Teladoc

Considering the 90-day investment horizon agilon health is expected to under-perform the Teladoc. In addition to that, Agilon Health is 2.05 times more volatile than Teladoc. It trades about -0.01 of its total potential returns per unit of risk. Teladoc is currently generating about 0.25 per unit of volatility. If you would invest  886.00  in Teladoc on August 31, 2024 and sell it today you would earn a total of  257.00  from holding Teladoc or generate 29.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

agilon health  vs.  Teladoc

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.

Teladoc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Teladoc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Teladoc exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilon Health and Teladoc

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

The idea behind agilon health and Teladoc 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.