Correlation Between Castle Biosciences and Agilent Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences and Agilent Technologies 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 Castle Biosciences and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and Agilent Technologies, you can compare the effects of market volatilities on Castle Biosciences and Agilent Technologies 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 Castle Biosciences with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and Agilent Technologies.

Diversification Opportunities for Castle Biosciences and Agilent Technologies

-0.14
  Correlation Coefficient

Good diversification

The 3 months correlation between Castle and Agilent is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Castle Biosciences 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 Castle Biosciences are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Castle Biosciences i.e., Castle Biosciences and Agilent Technologies go up and down completely randomly.

Pair Corralation between Castle Biosciences and Agilent Technologies

Given the investment horizon of 90 days Castle Biosciences is expected to under-perform the Agilent Technologies. In addition to that, Castle Biosciences is 1.82 times more volatile than Agilent Technologies. It trades about -0.14 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.02 per unit of volatility. If you would invest  13,384  in Agilent Technologies on September 23, 2024 and sell it today you would earn a total of  67.00  from holding Agilent Technologies or generate 0.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Castle Biosciences  vs.  Agilent Technologies

 Performance 
       Timeline  
Castle Biosciences 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Castle Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Castle Biosciences is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.
Agilent Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Castle Biosciences and Agilent Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Castle Biosciences and Agilent Technologies

The main advantage of trading using opposite Castle Biosciences and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.
The idea behind Castle Biosciences and Agilent Technologies 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

Other Complementary Tools

Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Commodity Directory
Find actively traded commodities issued by global exchanges
CEOs Directory
Screen CEOs from public companies around the world
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing