Correlation Between Agilent Technologies and Bankers Investment
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Bankers Investment 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 Bankers Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Bankers Investment Trust, you can compare the effects of market volatilities on Agilent Technologies and Bankers Investment 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 Bankers Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Bankers Investment.
Diversification Opportunities for Agilent Technologies and Bankers Investment
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and Bankers is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Bankers Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankers Investment 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 Bankers Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankers Investment Trust has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Bankers Investment go up and down completely randomly.
Pair Corralation between Agilent Technologies and Bankers Investment
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 1.47 times more return on investment than Bankers Investment. However, Agilent Technologies is 1.47 times more volatile than Bankers Investment Trust. It trades about 0.37 of its potential returns per unit of risk. Bankers Investment Trust is currently generating about 0.4 per unit of risk. If you would invest 13,387 in Agilent Technologies on October 23, 2024 and sell it today you would earn a total of 1,302 from holding Agilent Technologies or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Bankers Investment Trust
Performance |
| Timeline |
| Agilent Technologies |
| Bankers Investment Trust |
Agilent Technologies and Bankers Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Bankers Investment
The main advantage of trading using opposite Agilent Technologies and Bankers Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Bankers Investment 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 Bankers Investment will offset losses from the drop in Bankers Investment's long position.| Agilent Technologies vs. Home Depot | Agilent Technologies vs. Weiss Korea Opportunity | Agilent Technologies vs. River and Mercantile | Agilent Technologies vs. Chrysalis Investments |
| Bankers Investment vs. Catalyst Media Group | Bankers Investment vs. CATLIN GROUP | Bankers Investment vs. Tamburi Investment Partners | Bankers Investment vs. Magnora ASA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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