Correlation Between Meta Platforms and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Meta Platforms and Agilent Technologies 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 Meta Platforms and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and Agilent Technologies, you can compare the effects of market volatilities on Meta Platforms 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 Meta Platforms with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and Agilent Technologies.
Diversification Opportunities for Meta Platforms and Agilent Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meta and Agilent is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Meta Platforms 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 Meta Platforms 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 Meta Platforms i.e., Meta Platforms and Agilent Technologies go up and down completely randomly.
Pair Corralation between Meta Platforms and Agilent Technologies
If you would invest 16,949 in Meta Platforms on January 19, 2024 and sell it today you would earn a total of 0.00 from holding Meta Platforms or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Meta Platforms vs. Agilent Technologies
Performance |
Timeline |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilent Technologies |
Meta Platforms and Agilent Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Meta Platforms and Agilent Technologies
The main advantage of trading using opposite Meta Platforms and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
Agilent Technologies vs. Danaher | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Guardant Health | Agilent Technologies vs. Charles River Laboratories |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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