Correlation Between Fulgent Genetics and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Fulgent Genetics 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 Fulgent Genetics and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulgent Genetics and Agilent Technologies, you can compare the effects of market volatilities on Fulgent Genetics 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 Fulgent Genetics with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulgent Genetics and Agilent Technologies.
Diversification Opportunities for Fulgent Genetics and Agilent Technologies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fulgent and Agilent is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Genetics and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Fulgent Genetics 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 Fulgent Genetics 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 Fulgent Genetics i.e., Fulgent Genetics and Agilent Technologies go up and down completely randomly.
Pair Corralation between Fulgent Genetics and Agilent Technologies
Given the investment horizon of 90 days Fulgent Genetics is expected to generate 1.04 times more return on investment than Agilent Technologies. However, Fulgent Genetics is 1.04 times more volatile than Agilent Technologies. It trades about -0.26 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.34 per unit of risk. If you would invest 2,198 in Fulgent Genetics on January 20, 2024 and sell it today you would lose (187.00) from holding Fulgent Genetics or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fulgent Genetics vs. Agilent Technologies
Performance |
| Timeline |
| Fulgent Genetics |
| Agilent Technologies |
Fulgent Genetics and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulgent Genetics and Agilent Technologies
The main advantage of trading using opposite Fulgent Genetics and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulgent Genetics 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.| Fulgent Genetics vs. Certara | Fulgent Genetics vs. HealthStream | Fulgent Genetics vs. Evolent Health | Fulgent Genetics vs. Streamline Health Solutions |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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