Correlation Between Agilent Technologies and US Global
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and US Global 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 US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and US Global Sea, you can compare the effects of market volatilities on Agilent Technologies and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and US Global.
Diversification Opportunities for Agilent Technologies and US Global
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and SEA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and US Global Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Sea 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Sea has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and US Global go up and down completely randomly.
Pair Corralation between Agilent Technologies and US Global
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the US Global. In addition to that, Agilent Technologies is 1.9 times more volatile than US Global Sea. It trades about -0.12 of its total potential returns per unit of risk. US Global Sea is currently generating about 0.21 per unit of volatility. If you would invest 1,484 in US Global Sea on January 26, 2024 and sell it today you would earn a total of 60.00 from holding US Global Sea or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. US Global Sea
Performance |
| Timeline |
| Agilent Technologies |
| US Global Sea |
Agilent Technologies and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and US Global
The main advantage of trading using opposite Agilent Technologies and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock BiotechLtd | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Psychemedics |
| US Global vs. Fidelity MSCI Materials | US Global vs. Fidelity MSCI Financials | US Global vs. Fidelity MSCI Consumer | US Global vs. Fidelity MSCI Consumer |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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