Correlation Between Agilent Technologies and Sherborne Investors
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Sherborne Investors 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 Sherborne Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Sherborne Investors Guernsey, you can compare the effects of market volatilities on Agilent Technologies and Sherborne Investors 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 Sherborne Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Sherborne Investors.
Diversification Opportunities for Agilent Technologies and Sherborne Investors
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilent and Sherborne is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Sherborne Investors Guernsey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherborne Investors 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 Sherborne Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherborne Investors has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Sherborne Investors go up and down completely randomly.
Pair Corralation between Agilent Technologies and Sherborne Investors
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 0.86 times more return on investment than Sherborne Investors. However, Agilent Technologies is 1.16 times less risky than Sherborne Investors. It trades about -0.18 of its potential returns per unit of risk. Sherborne Investors Guernsey is currently generating about -0.39 per unit of risk. If you would invest 14,348 in Agilent Technologies on October 9, 2024 and sell it today you would lose (564.00) from holding Agilent Technologies or give up 3.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Agilent Technologies vs. Sherborne Investors Guernsey
Performance |
| Timeline |
| Agilent Technologies |
| Sherborne Investors |
Agilent Technologies and Sherborne Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Sherborne Investors
The main advantage of trading using opposite Agilent Technologies and Sherborne Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Sherborne Investors 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 Sherborne Investors will offset losses from the drop in Sherborne Investors' long position.| Agilent Technologies vs. Young Cos Brewery | Agilent Technologies vs. Ashtead Technology Holdings | Agilent Technologies vs. Electronic Arts | Agilent Technologies vs. BE Semiconductor Industries |
| Sherborne Investors vs. BYD Co | Sherborne Investors vs. Volkswagen AG Non Vtg | Sherborne Investors vs. United Parcel Service | Sherborne Investors vs. Jardine Matheson Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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