Correlation Between Agilent Technologies and VBI Vaccines
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and VBI Vaccines 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 VBI Vaccines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and VBI Vaccines, you can compare the effects of market volatilities on Agilent Technologies and VBI Vaccines 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 VBI Vaccines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and VBI Vaccines.
Diversification Opportunities for Agilent Technologies and VBI Vaccines
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and VBI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and VBI Vaccines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VBI Vaccines 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 VBI Vaccines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VBI Vaccines has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and VBI Vaccines go up and down completely randomly.
Pair Corralation between Agilent Technologies and VBI Vaccines
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.52 times more return on investment than VBI Vaccines. However, Agilent Technologies is 1.92 times less risky than VBI Vaccines. It trades about 0.36 of its potential returns per unit of risk. VBI Vaccines is currently generating about 0.07 per unit of risk. If you would invest 13,255 in Agilent Technologies on December 29, 2023 and sell it today you would earn a total of 1,482 from holding Agilent Technologies or generate 11.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agilent Technologies vs. VBI Vaccines
Performance |
Timeline |
Agilent Technologies |
VBI Vaccines |
Agilent Technologies and VBI Vaccines Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and VBI Vaccines
The main advantage of trading using opposite Agilent Technologies and VBI Vaccines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, VBI Vaccines 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 VBI Vaccines will offset losses from the drop in VBI Vaccines' long position.Agilent Technologies vs. Mustang Bio | Agilent Technologies vs. Moleculin Biotech | Agilent Technologies vs. Clever Leaves Holdings | Agilent Technologies vs. Seres Therapeutics |
VBI Vaccines vs. Artisan Partners Asset | VBI Vaccines vs. GAMCO Global Gold | VBI Vaccines vs. Playstudios | VBI Vaccines vs. Playtika Holding 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |