Correlation Between CN MODERN and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both CN MODERN 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 CN MODERN and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and Agilent Technologies, you can compare the effects of market volatilities on CN MODERN 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 CN MODERN with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and Agilent Technologies.
Diversification Opportunities for CN MODERN and Agilent Technologies
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 07M and Agilent is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and CN MODERN 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 CN MODERN DAIRY 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 CN MODERN i.e., CN MODERN and Agilent Technologies go up and down completely randomly.
Pair Corralation between CN MODERN and Agilent Technologies
Assuming the 90 days trading horizon CN MODERN DAIRY is expected to generate 1.39 times more return on investment than Agilent Technologies. However, CN MODERN is 1.39 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 0.01 per unit of risk. If you would invest 10.00 in CN MODERN DAIRY on October 16, 2024 and sell it today you would lose (0.25) from holding CN MODERN DAIRY or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN MODERN DAIRY vs. Agilent Technologies
Performance |
| Timeline |
| CN MODERN DAIRY |
| Agilent Technologies |
CN MODERN and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and Agilent Technologies
The main advantage of trading using opposite CN MODERN and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN 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.| CN MODERN vs. China Reinsurance | CN MODERN vs. Delta Air Lines | CN MODERN vs. SEALED AIR | CN MODERN vs. Pentair plc |
| Agilent Technologies vs. INTER CARS SA | Agilent Technologies vs. United Natural Foods | Agilent Technologies vs. CN MODERN DAIRY | Agilent Technologies vs. CarsalesCom |
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 the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |