Correlation Between Agilent Technologies and Invictus

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

By analyzing existing cross correlation between Agilent Technologies and Invictus MD Strategies, you can compare the effects of market volatilities on Agilent Technologies and Invictus 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 Invictus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Invictus.

Diversification Opportunities for Agilent Technologies and Invictus

0.0

Correlation Coefficient

Agilent Technologies  Invictus

Pay attention - limited upside

The 3 months correlation between Agilent and Invictus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Invictus MD Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invictus MD Strategies 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 Invictus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invictus MD Strategies has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Invictus go up and down completely randomly.

Pair Corralation between Agilent Technologies and Invictus

If you would invest (100.00) in Invictus MD Strategies on December 25, 2024 and sell it today you would earn a total of  100.00  from holding Invictus MD Strategies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Agilent Technologies  vs.  Invictus MD Strategies

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. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Invictus MD Strategies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Invictus MD Strategies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Invictus is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Agilent Technologies and Invictus

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

The idea behind Agilent Technologies and Invictus MD Strategies 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 Commodity Directory module to find actively traded commodities issued by global exchanges.