Correlation Between Agilent Technologies and PLANT VEDA

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

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

Diversification Opportunities for Agilent Technologies and PLANT VEDA

0.0

Correlation Coefficient

Agilent Technologies  PLANT VEDA

Pay attention - limited upside

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

Pair Corralation between Agilent Technologies and PLANT VEDA

If you would invest  1.15  in PLANT VEDA FOODS on December 20, 2024 and sell it today you would earn a total of  0.00  from holding PLANT VEDA FOODS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	76.67%
Values	Daily Returns

Agilent Technologies  vs.  PLANT VEDA FOODS

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PLANT VEDA FOODS

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLANT VEDA FOODS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PLANT VEDA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Agilent Technologies and PLANT VEDA

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

The idea behind Agilent Technologies and PLANT VEDA FOODS 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.