Correlation Between Agilent Technologies and Bisichi Mining

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

By analyzing existing cross correlation between Agilent Technologies and Bisichi Mining PLC, you can compare the effects of market volatilities on Agilent Technologies and Bisichi Mining 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 Agilent Technologies with a short position of Bisichi Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Bisichi Mining.

Diversification Opportunities for Agilent Technologies and Bisichi Mining

0.66

Correlation Coefficient

Agilent Technologies  Bisichi Mining

Poor diversification

The 3 months correlation between Agilent and Bisichi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Bisichi Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bisichi Mining PLC and Agilent Technologies 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 Agilent Technologies are associated (or correlated) with Bisichi Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bisichi Mining PLC has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Bisichi Mining go up and down completely randomly.

Pair Corralation between Agilent Technologies and Bisichi Mining

Assuming the 90 days trading horizon Agilent Technologies is expected to generate 1.06 times more return on investment than Bisichi Mining. However, Agilent Technologies is 1.06 times more volatile than Bisichi Mining PLC. It trades about -0.08 of its potential returns per unit of risk. Bisichi Mining PLC is currently generating about -0.19 per unit of risk. If you would invest  13,510  in Agilent Technologies on December 25, 2024 and sell it today you would lose (1,271) from holding Agilent Technologies or give up 9.41% of portfolio value over 90 days.

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

Agilent Technologies  vs.  Bisichi Mining PLC

Agilent Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bisichi Mining PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bisichi Mining PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Agilent Technologies and Bisichi Mining

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

The idea behind Agilent Technologies and Bisichi Mining PLC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.