Correlation Analysis Between Ford Motor and Agilent Technologies

This module allows you to analyze existing cross correlation between Ford Motor Company and Agilent Technologies. You can compare the effects of market volatilities on Ford Motor 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 Ford Motor with a short position of Agilent Technologies. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Agilent Technologies.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Ford Motor  
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.
Agilent Technologies  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat fragile basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in October 2019.

Ford Motor and Agilent Technologies Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  Agilent Technologies Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the Agilent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor Company is 1.08 times less risky than Agilent Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The Agilent Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  7,249  in Agilent Technologies on August 18, 2019 and sell it today you would earn a total of  466.00  from holding Agilent Technologies or generate 6.43% return on investment over 30 days.

Pair Corralation between Ford Motor and Agilent Technologies

0.98
Time Period3 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Agilent Technologies

Ford Motor Company diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Agilent Technologies Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Ford Motor 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 Ford Motor Company 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 Ford Motor i.e. Ford Motor and Agilent Technologies go up and down completely randomly.
See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.


 
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