Correlation Between Agilent Technologies and FLIR Systems
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and FLIR Systems 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 FLIR Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and FLIR Systems, you can compare the effects of market volatilities on Agilent Technologies and FLIR Systems 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 FLIR Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and FLIR Systems.
Diversification Opportunities for Agilent Technologies and FLIR Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilent and FLIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and FLIR Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLIR Systems 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 FLIR Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLIR Systems has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and FLIR Systems go up and down completely randomly.
Pair Corralation between Agilent Technologies and FLIR Systems
If you would invest (100.00) in FLIR Systems on January 25, 2024 and sell it today you would earn a total of 100.00 from holding FLIR Systems 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. FLIR Systems
Performance |
| Timeline |
| Agilent Technologies |
| FLIR Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilent Technologies and FLIR Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and FLIR Systems
The main advantage of trading using opposite Agilent Technologies and FLIR Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, FLIR Systems 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 FLIR Systems will offset losses from the drop in FLIR Systems' long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock BiotechLtd | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Psychemedics |
| FLIR Systems vs. Mannatech Incorporated | FLIR Systems vs. Ecolab Inc | FLIR Systems vs. Dow Inc | FLIR Systems vs. Avient Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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