Correlation Between Agilent Technologies and ATT

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

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

Diversification Opportunities for Agilent Technologies and ATT

-0.38
  Correlation Coefficient
Agilent Technologies
ATT Inc

Very good diversification

The 24 months correlation between Agilent and ATT is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and ATT Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ATT go up and down completely randomly.

Pair Corralation between Agilent Technologies and ATT

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.06 times more return on investment than ATT. However, Agilent Technologies is 1.06 times more volatile than ATT Inc. It trades about 0.08 of its potential returns per unit of risk. ATT Inc is currently generating about -0.03 per unit of risk. If you would invest  8,047  in Agilent Technologies on August 30, 2021 and sell it today you would earn a total of  7,160  from holding Agilent Technologies or generate 88.98% return on investment over 90 days.
Time Period24 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Agilent Technologies  vs.  ATT Inc

 Performance (%) 
      Timeline 
Agilent Technologies 
Agilent Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat sluggish basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in December 2021.

Agilent Price Channel

ATT Inc 
ATT Performance
0 of 100
Over the last 90 days ATT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATT is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

ATT Price Channel

Agilent Technologies and ATT Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Agilent Technologies and ATT

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

ATT Inc

Pair trading matchups for ATT

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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