Correlation Between Agilent Technologies and GreenTree Hospitality
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and GreenTree Hospitality 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 GreenTree Hospitality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and GreenTree Hospitality Group, you can compare the effects of market volatilities on Agilent Technologies and GreenTree Hospitality 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 GreenTree Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and GreenTree Hospitality.
Diversification Opportunities for Agilent Technologies and GreenTree Hospitality
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Agilent and GreenTree is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and GreenTree Hospitality Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTree Hospitality 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 GreenTree Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTree Hospitality has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and GreenTree Hospitality go up and down completely randomly.
Pair Corralation between Agilent Technologies and GreenTree Hospitality
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.56 times more return on investment than GreenTree Hospitality. However, Agilent Technologies is 1.79 times less risky than GreenTree Hospitality. It trades about 0.02 of its potential returns per unit of risk. GreenTree Hospitality Group is currently generating about -0.04 per unit of risk. If you would invest 13,510 in Agilent Technologies on January 25, 2024 and sell it today you would earn a total of 410.00 from holding Agilent Technologies or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. GreenTree Hospitality Group
Performance |
| Timeline |
| Agilent Technologies |
| GreenTree Hospitality |
Agilent Technologies and GreenTree Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and GreenTree Hospitality
The main advantage of trading using opposite Agilent Technologies and GreenTree Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, GreenTree Hospitality 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 GreenTree Hospitality will offset losses from the drop in GreenTree Hospitality's long position.| Agilent Technologies vs. Nuvation Bio | Agilent Technologies vs. Lyell Immunopharma | Agilent Technologies vs. Century Therapeutics | Agilent Technologies vs. Generation BioCo |
| GreenTree Hospitality vs. Yatra Online | GreenTree Hospitality vs. Despegar Corp | GreenTree Hospitality vs. Mondee Holdings | GreenTree Hospitality vs. MakeMyTrip Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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