Correlation Between Agilent Technologies and AAC Holdings
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and AAC Holdings 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 AAC Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and AAC Holdings, you can compare the effects of market volatilities on Agilent Technologies and AAC Holdings 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 AAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and AAC Holdings.
Diversification Opportunities for Agilent Technologies and AAC Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilent and AAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and AAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Holdings 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 AAC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Holdings has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and AAC Holdings go up and down completely randomly.
Pair Corralation between Agilent Technologies and AAC Holdings
If you would invest 13,078 in Agilent Technologies on January 26, 2024 and sell it today you would earn a total of 671.00 from holding Agilent Technologies or generate 5.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Agilent Technologies vs. AAC Holdings
Performance |
Timeline |
Agilent Technologies |
AAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilent Technologies and AAC Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and AAC Holdings
The main advantage of trading using opposite Agilent Technologies and AAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, AAC Holdings 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 AAC Holdings will offset losses from the drop in AAC Holdings' long position.Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock BiotechLtd | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Psychemedics |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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