Correlation Between Twitter and Agilent Technologies

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Twitter and Agilent Technologies

0.89
  Correlation Coefficient
Twitter
Agilent Technologies

Very poor diversification

The 24 months correlation between Twitter and Agilent is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Agilent Technologies in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Twitter 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 Twitter 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 Twitter i.e., Twitter and Agilent Technologies go up and down completely randomly.

Pair Corralation between Twitter and Agilent Technologies

Given the investment horizon of 90 days Twitter is expected to generate 1.86 times more return on investment than Agilent Technologies. However, Twitter is 1.86 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 -0.17 per unit of risk. If you would invest  6,343  in Twitter on July 28, 2021 and sell it today you would lose (160.00)  from holding Twitter or give up 2.52% of portfolio value over 90 days.
Time Period24 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Twitter  vs.  Agilent Technologies

 Performance (%) 
      Timeline 
Twitter 
 Twitter Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Twitter reported solid returns over the last few months and may actually be approaching a breakup point.

Twitter Price Channel

Agilent Technologies 
 Agilent Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in November 2021.

Agilent Price Channel

Twitter and Agilent Technologies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Twitter and Agilent Technologies

The main advantage of trading using opposite Twitter and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter 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 Twitter 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

Other Complementary Tools

Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Equity Search
Search for activelly traded equities including funds and ETFs from over 30 global markets
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go