Correlation Between Bioventus Inc and Agilent Technologies

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Can any of the company-specific risk be diversified away by investing in both Bioventus Inc 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 Bioventus Inc and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioventus Inc Cl and Agilent Technologies, you can compare the effects of market volatilities on Bioventus Inc 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 Bioventus Inc with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioventus Inc and Agilent Technologies.

Diversification Opportunities for Bioventus Inc and Agilent Technologies

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Bioventus and Agilent is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Bioventus Inc Cl and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Bioventus Inc 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 Bioventus Inc Cl 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 Bioventus Inc i.e., Bioventus Inc and Agilent Technologies go up and down completely randomly.

Pair Corralation between Bioventus Inc and Agilent Technologies

Considering the 90-day investment horizon Bioventus Inc Cl is expected to under-perform the Agilent Technologies. In addition to that, Bioventus Inc is 1.58 times more volatile than Agilent Technologies. It trades about -0.18 of its total potential returns per unit of risk. Agilent Technologies is currently generating about -0.06 per unit of volatility. If you would invest  13,521  in Agilent Technologies on March 28, 2022 and sell it today you would lose (1,392)  from holding Agilent Technologies or give up 10.3% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Bioventus Inc Cl  vs.  Agilent Technologies

 Performance (%) 
      Timeline 
Bioventus Inc 
Bioventus Performance
0 of 100
Over the last 90 days Bioventus Inc Cl has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in July 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Bioventus Price Channel

Agilent Technologies 
Agilent Performance
0 of 100
Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0074
Payout Ratio
0.18
Last Split Factor
1398:1000
Forward Annual Dividend Rate
0.84
Dividend Date
2022-07-27
Ex Dividend Date
2022-07-01
Last Split Date
2014-11-03

Agilent Price Channel

Bioventus Inc and Agilent Technologies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bioventus Inc and Agilent Technologies

The main advantage of trading using opposite Bioventus Inc and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioventus Inc 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 Bioventus Inc Cl 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.
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.

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