Correlation Between Agilent Technologies and Twitter
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Twitter 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 Twitter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Twitter, you can compare the effects of market volatilities on Agilent Technologies and Twitter 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 Twitter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Twitter.
Diversification Opportunities for Agilent Technologies and Twitter
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and Twitter is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Twitter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twitter 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 Twitter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twitter has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Twitter go up and down completely randomly.
Pair Corralation between Agilent Technologies and Twitter
If you would invest 13,122 in Agilent Technologies on December 20, 2023 and sell it today you would earn a total of 1,487 from holding Agilent Technologies or generate 11.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 2.44% |
Values | Daily Returns |
Agilent Technologies vs. Twitter
Performance |
Timeline |
Agilent Technologies |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Agilent Technologies and Twitter Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and Twitter
The main advantage of trading using opposite Agilent Technologies and Twitter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Twitter 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 Twitter will offset losses from the drop in Twitter's long position.Agilent Technologies vs. YS Biopharma Co | Agilent Technologies vs. Vivani Medical | Agilent Technologies vs. Vaxxinity | Agilent Technologies vs. DiaMedica Therapeutics |
Twitter vs. Celsius Holdings | Twitter vs. National Beverage Corp | Twitter vs. Diageo PLC ADR | Twitter vs. Primo Water Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |