Correlation Between Aspira Womens and Agilent Technologies

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

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

Diversification Opportunities for Aspira Womens and Agilent Technologies

-0.71

Correlation Coefficient

Aspira Womens  Agilent Technologies

Pay attention - limited upside

The 3 months correlation between Aspira and Agilent is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Aspira Womens i.e., Aspira Womens and Agilent Technologies go up and down completely randomly.

Pair Corralation between Aspira Womens and Agilent Technologies

Considering the 90-day investment horizon Aspira Womens Health is expected to generate 3.89 times more return on investment than Agilent Technologies. However, Aspira Womens is 3.89 times more volatile than Agilent Technologies. It trades about 0.01 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.02 per unit of risk. If you would invest  1,055  in Aspira Womens Health on January 24, 2024 and sell it today you would lose (705.00) from holding Aspira Womens Health or give up 66.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aspira Womens Health  vs.  Agilent Technologies

Aspira Womens Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Agilent Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 3 (%) 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 current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Aspira Womens and Agilent Technologies

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

The idea behind Aspira Womens Health and Agilent Technologies 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.