Correlation Between Agilent Technologies and Iron Mountain
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Iron Mountain 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 Agilent Technologies and Iron Mountain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Iron Mountain, you can compare the effects of market volatilities on Agilent Technologies and Iron Mountain 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 Agilent Technologies with a short position of Iron Mountain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Iron Mountain.
Diversification Opportunities for Agilent Technologies and Iron Mountain
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Iron is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Iron Mountain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iron Mountain and Agilent Technologies 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 Agilent Technologies are associated (or correlated) with Iron Mountain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iron Mountain has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Iron Mountain go up and down completely randomly.
Pair Corralation between Agilent Technologies and Iron Mountain
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 0.58 times more return on investment than Iron Mountain. However, Agilent Technologies is 1.72 times less risky than Iron Mountain. It trades about 0.4 of its potential returns per unit of risk. Iron Mountain is currently generating about -0.03 per unit of risk. If you would invest 13,300 in Agilent Technologies on November 3, 2024 and sell it today you would earn a total of 1,970 from holding Agilent Technologies or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Iron Mountain
Performance |
| Timeline |
| Agilent Technologies |
| Iron Mountain |
Agilent Technologies and Iron Mountain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Iron Mountain
The main advantage of trading using opposite Agilent Technologies and Iron Mountain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Iron Mountain 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 Iron Mountain will offset losses from the drop in Iron Mountain's long position.| Agilent Technologies vs. CAP LEASE AVIATION | Agilent Technologies vs. Ebro Foods | Agilent Technologies vs. Broadcom | Agilent Technologies vs. Broadridge Financial Solutions |
| Iron Mountain vs. Check Point Software | Iron Mountain vs. Gaztransport et Technigaz | Iron Mountain vs. Aeorema Communications Plc | Iron Mountain vs. Pressure Technologies Plc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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