Correlation Between Charles River and Agilent Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Charles River 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 Charles River and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charles River Laboratories and Agilent Technologies, you can compare the effects of market volatilities on Charles River 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 Charles River with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charles River and Agilent Technologies.

Diversification Opportunities for Charles River and Agilent Technologies

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Charles and Agilent is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Charles River Laboratories and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Charles River 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 Charles River Laboratories 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 Charles River i.e., Charles River and Agilent Technologies go up and down completely randomly.

Pair Corralation between Charles River and Agilent Technologies

Considering the 90-day investment horizon Charles River Laboratories is expected to under-perform the Agilent Technologies. In addition to that, Charles River is 1.18 times more volatile than Agilent Technologies. It trades about -0.03 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.04 per unit of volatility. If you would invest  11,768  in Agilent Technologies on March 28, 2022 and sell it today you would earn a total of  361.00  from holding Agilent Technologies or generate 3.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Charles River Laboratories  vs.  Agilent Technologies

 Performance (%) 
      Timeline 
Charles River Labora 
Charles Performance
0 of 100
Over the last 90 days Charles River Laboratories 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 steady which may send shares a bit higher in July 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Charles 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

Charles River and Agilent Technologies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Charles River and Agilent Technologies

The main advantage of trading using opposite Charles River and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charles River 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 Charles River Laboratories 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
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
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go