Correlation Between Agilent Technologies and FLDM

Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and FLDM 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 FLDM into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agilent Technologies and FLDM, you can compare the effects of market volatilities on Agilent Technologies and FLDM 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 FLDM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and FLDM.

Diversification Opportunities for Agilent Technologies and FLDM

0.0

Correlation Coefficient

Agilent Technologies  FLDM

Pay attention - limited upside

The 3 months correlation between Agilent and FLDM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and FLDM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLDM 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 FLDM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLDM has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and FLDM go up and down completely randomly.

Pair Corralation between Agilent Technologies and FLDM

If you would invest (100.00) in FLDM on January 26, 2024 and sell it today you would earn a total of  100.00  from holding FLDM or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Agilent Technologies  vs.  FLDM

Agilent Technologies

Risk-Adjusted Performance

4 of 100

Modest

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 90 days. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

FLDM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FLDM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, FLDM is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Agilent Technologies and FLDM

The main advantage of trading using opposite Agilent Technologies and FLDM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, FLDM 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 FLDM will offset losses from the drop in FLDM's long position.

The idea behind Agilent Technologies and FLDM pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.