Correlation Between Agilent Technologies and GlycoMimetics

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

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

Diversification Opportunities for Agilent Technologies and GlycoMimetics

0.13

Correlation Coefficient

Agilent Technologies  GlycoMimetics

Average diversification

The 3 months correlation between Agilent and GlycoMimetics is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and GlycoMimetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlycoMimetics 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 GlycoMimetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlycoMimetics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and GlycoMimetics go up and down completely randomly.

Pair Corralation between Agilent Technologies and GlycoMimetics

Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the GlycoMimetics. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 3.48 times less risky than GlycoMimetics. The stock trades about -0.13 of its potential returns per unit of risk. The GlycoMimetics is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  25.00  in GlycoMimetics on December 30, 2024 and sell it today you would lose (3.00) from holding GlycoMimetics or give up 12.0% of portfolio value over 90 days.

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

Agilent Technologies  vs.  GlycoMimetics

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 weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

GlycoMimetics

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Agilent Technologies and GlycoMimetics

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

The idea behind Agilent Technologies and GlycoMimetics 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.