Correlation Between AEGEAN AIRLINES and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both AEGEAN AIRLINES and Agilent Technologies 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 AEGEAN AIRLINES and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEGEAN AIRLINES and Agilent Technologies, you can compare the effects of market volatilities on AEGEAN AIRLINES and Agilent Technologies 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 AEGEAN AIRLINES with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEGEAN AIRLINES and Agilent Technologies.
Diversification Opportunities for AEGEAN AIRLINES and Agilent Technologies
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AEGEAN and Agilent is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AEGEAN AIRLINES and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and AEGEAN AIRLINES 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 AEGEAN AIRLINES are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of AEGEAN AIRLINES i.e., AEGEAN AIRLINES and Agilent Technologies go up and down completely randomly.
Pair Corralation between AEGEAN AIRLINES and Agilent Technologies
Assuming the 90 days trading horizon AEGEAN AIRLINES is expected to generate 48.73 times less return on investment than Agilent Technologies. In addition to that, AEGEAN AIRLINES is 1.14 times more volatile than Agilent Technologies. It trades about 0.01 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.33 per unit of volatility. If you would invest 13,128 in Agilent Technologies on November 7, 2024 and sell it today you would earn a total of 1,436 from holding Agilent Technologies or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
AEGEAN AIRLINES vs. Agilent Technologies
Performance |
| Timeline |
| AEGEAN AIRLINES |
| Agilent Technologies |
AEGEAN AIRLINES and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEGEAN AIRLINES and Agilent Technologies
The main advantage of trading using opposite AEGEAN AIRLINES and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEGEAN AIRLINES position performs unexpectedly, Agilent Technologies 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc | AEGEAN AIRLINES vs. Apple Inc |
| Agilent Technologies vs. WuXi AppTec Co | Agilent Technologies vs. Thermo Fisher Scientific | Agilent Technologies vs. Danaher | Agilent Technologies vs. Danaher |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |