Correlation Between Agilent Technologies and Imd Companies
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Imd Companies 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 Imd Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Imd Companies, you can compare the effects of market volatilities on Agilent Technologies and Imd Companies 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 Imd Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Imd Companies.
Diversification Opportunities for Agilent Technologies and Imd Companies
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilent and Imd is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Imd Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imd Companies 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 Imd Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imd Companies has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Imd Companies go up and down completely randomly.
Pair Corralation between Agilent Technologies and Imd Companies
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 4997.5 times less return on investment than Imd Companies. But when comparing it to its historical volatility, Agilent Technologies is 8.82 times less risky than Imd Companies. It trades about 0.0 of its potential returns per unit of risk. Imd Companies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.10 in Imd Companies on December 4, 2024 and sell it today you would earn a total of 0.02 from holding Imd Companies or generate 20.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Agilent Technologies vs. Imd Companies
Performance |
Timeline |
Agilent Technologies |
Imd Companies |
Agilent Technologies and Imd Companies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and Imd Companies
The main advantage of trading using opposite Agilent Technologies and Imd Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Imd Companies 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 Imd Companies will offset losses from the drop in Imd Companies' long position.Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
Imd Companies vs. Rushnet | Imd Companies vs. Star Equity Holdings | Imd Companies vs. Imagion Biosystems Limited | Imd Companies vs. Biodesix |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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