Correlation Between JPMorgan Chase and Agilent Technologies

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

Diversification Opportunities for JPMorgan Chase and Agilent Technologies

0.82
  Correlation Coefficient

Very poor diversification

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

Pair Corralation between JPMorgan Chase and Agilent Technologies

Considering the 90-day investment horizon JPMorgan Chase is expected to generate 1.11 times less return on investment than Agilent Technologies. But when comparing it to its historical volatility, JPMorgan Chase Co is 1.64 times less risky than Agilent Technologies. It trades about 0.15 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  13,814  in Agilent Technologies on October 29, 2022 and sell it today you would earn a total of  1,747  from holding Agilent Technologies or generate 12.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

JPMorgan Chase Co  vs.  Agilent Technologies

 Performance (%) 
       Timeline  
JPMorgan Chase 
JPMorgan Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan Chase Co are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, JPMorgan Chase may actually be approaching a critical reversion point that can send shares even higher in February 2023.

JPMorgan Price Channel

Agilent Technologies 
Agilent Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, Agilent Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Agilent Price Channel

JPMorgan Chase and Agilent Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with JPMorgan Chase and Agilent Technologies

The main advantage of trading using opposite JPMorgan Chase and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPMorgan Chase 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.
JPMorgan Chase vs. Ryanair Holdings PLC
JPMorgan Chase vs. Dave Busters Entertainment
JPMorgan Chase vs. Paramount Global
JPMorgan Chase vs. Deutsche Lufthansa AG
The idea behind JPMorgan Chase Co 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.
Agilent Technologies vs. AbbVie Inc
Agilent Technologies vs. Abeona Therapeutics
Agilent Technologies vs. Arbutus Biopharma Corp
Agilent Technologies vs. ACADIA Pharmaceuticals
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Money Managers
Screen money managers from public funds and ETFs managed around the world
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
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
CEO Directory
Screen CEOs from public companies around the world