Correlation Between Agilent Technologies and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Symphony Environmental 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 Symphony Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Symphony Environmental Technologies, you can compare the effects of market volatilities on Agilent Technologies and Symphony Environmental 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 Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Symphony Environmental.
Diversification Opportunities for Agilent Technologies and Symphony Environmental
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agilent and Symphony is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental 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 Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Symphony Environmental go up and down completely randomly.
Pair Corralation between Agilent Technologies and Symphony Environmental
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 1.1 times more return on investment than Symphony Environmental. However, Agilent Technologies is 1.1 times more volatile than Symphony Environmental Technologies. It trades about 0.4 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about 0.37 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Symphony Environmental Technol
Performance |
| Timeline |
| Agilent Technologies |
| Symphony Environmental |
Agilent Technologies and Symphony Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Symphony Environmental
The main advantage of trading using opposite Agilent Technologies and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.| Agilent Technologies vs. CAP LEASE AVIATION | Agilent Technologies vs. Ebro Foods | Agilent Technologies vs. Broadcom | Agilent Technologies vs. Broadridge Financial Solutions |
| Symphony Environmental vs. Givaudan SA | Symphony Environmental vs. Antofagasta PLC | Symphony Environmental vs. Ferrexpo PLC | Symphony Environmental vs. Atalaya Mining |
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 CEOs Directory module to screen CEOs from public companies around the world.
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