Pair Correlation Between DOW and Agilent Technologies

This module allows you to analyze existing cross correlation between DOW and Agilent Technologies Inc. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Agilent Technologies. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Agilent Technologies.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Agilent Technologies Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 1.21 times less return on investment than Agilent Technologies. But when comparing it to its historical volatility, DOW is 2.35 times less risky than Agilent Technologies. It trades about 0.66 of its potential returns per unit of risk. Agilent Technologies Inc is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest  6,740  in Agilent Technologies Inc on December 20, 2017 and sell it today you would earn a total of  479  from holding Agilent Technologies Inc or generate 7.11% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Agilent Technologies
0.92

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy95.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Agilent Technologies Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies Inc and DOW 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 DOW 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 Inc has no effect on the direction of DOW i.e. DOW and Agilent Technologies go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns