Correlation Between Inovio Pharmaceuticals and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Inovio Pharmaceuticals 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 Inovio Pharmaceuticals and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inovio Pharmaceuticals and Agilent Technologies, you can compare the effects of market volatilities on Inovio Pharmaceuticals 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 Inovio Pharmaceuticals with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inovio Pharmaceuticals and Agilent Technologies.
Diversification Opportunities for Inovio Pharmaceuticals and Agilent Technologies
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inovio and Agilent is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Inovio Pharmaceuticals and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Inovio Pharmaceuticals 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 Inovio Pharmaceuticals 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 Inovio Pharmaceuticals i.e., Inovio Pharmaceuticals and Agilent Technologies go up and down completely randomly.
Pair Corralation between Inovio Pharmaceuticals and Agilent Technologies
Considering the 90-day investment horizon Inovio Pharmaceuticals is expected to generate 4.13 times more return on investment than Agilent Technologies. However, Inovio Pharmaceuticals is 4.13 times more volatile than Agilent Technologies. It trades about -0.02 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.32 per unit of risk. If you would invest 1,079 in Inovio Pharmaceuticals on January 20, 2024 and sell it today you would lose (59.00) from holding Inovio Pharmaceuticals or give up 5.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inovio Pharmaceuticals vs. Agilent Technologies
Performance |
| Timeline |
| Inovio Pharmaceuticals |
| Agilent Technologies |
Inovio Pharmaceuticals and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inovio Pharmaceuticals and Agilent Technologies
The main advantage of trading using opposite Inovio Pharmaceuticals and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inovio Pharmaceuticals 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.| Inovio Pharmaceuticals vs. Novavax | Inovio Pharmaceuticals vs. Vaxart Inc | Inovio Pharmaceuticals vs. Enveric Biosciences | Inovio Pharmaceuticals vs. Ocean Biomedical |
| Agilent Technologies vs. Oric PharmaceuticalsInc | Agilent Technologies vs. Anebulo Pharmaceuticals | Agilent Technologies vs. Cullinan Oncology LLC | Agilent Technologies vs. C4 TherapeuticsInc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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