Correlation Between Agilent Technologies and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Allianz Technology 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 Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Allianz Technology Trust, you can compare the effects of market volatilities on Agilent Technologies and Allianz Technology 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 Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Allianz Technology.
Diversification Opportunities for Agilent Technologies and Allianz Technology
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilent and Allianz is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust 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 Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Allianz Technology go up and down completely randomly.
Pair Corralation between Agilent Technologies and Allianz Technology
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 1.27 times more return on investment than Allianz Technology. However, Agilent Technologies is 1.27 times more volatile than Allianz Technology Trust. It trades about 0.44 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.14 per unit of risk. If you would invest 13,387 in Agilent Technologies on October 24, 2024 and sell it today you would earn a total of 1,910 from holding Agilent Technologies or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Agilent Technologies vs. Allianz Technology Trust
Performance |
| Timeline |
| Agilent Technologies |
| Allianz Technology Trust |
Agilent Technologies and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Allianz Technology
The main advantage of trading using opposite Agilent Technologies and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Allianz Technology 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 Allianz Technology will offset losses from the drop in Allianz Technology's long position.| Agilent Technologies vs. Infrastrutture Wireless Italiane | Agilent Technologies vs. Iron Mountain | Agilent Technologies vs. JLEN Environmental Assets | Agilent Technologies vs. Cairo Communication SpA |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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