Correlation Between Agilent Technologies and Kamada
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Kamada 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 Kamada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Kamada, you can compare the effects of market volatilities on Agilent Technologies and Kamada 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 Kamada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Kamada.
Diversification Opportunities for Agilent Technologies and Kamada
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilent and Kamada is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Kamada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kamada 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 Kamada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kamada has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Kamada go up and down completely randomly.
Pair Corralation between Agilent Technologies and Kamada
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.78 times more return on investment than Kamada. However, Agilent Technologies is 1.29 times less risky than Kamada. It trades about -0.27 of its potential returns per unit of risk. Kamada is currently generating about -0.3 per unit of risk. If you would invest 14,532 in Agilent Technologies on January 24, 2024 and sell it today you would lose (1,141) from holding Agilent Technologies or give up 7.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Agilent Technologies vs. Kamada
Performance |
Timeline |
Agilent Technologies |
Kamada |
Agilent Technologies and Kamada Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and Kamada
The main advantage of trading using opposite Agilent Technologies and Kamada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Kamada 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 Kamada will offset losses from the drop in Kamada's long position.Agilent Technologies vs. Nuvation Bio | Agilent Technologies vs. Lyell Immunopharma | Agilent Technologies vs. Century Therapeutics | Agilent Technologies vs. Generation BioCo |
Kamada vs. Lifecore Biomedical | Kamada vs. Shuttle Pharmaceuticals | Kamada vs. Cumberland Pharmaceuticals | Kamada vs. Ironwood Pharmaceuticals |
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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