Correlation Between INTER CARS and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both INTER CARS 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 INTER CARS and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and Agilent Technologies, you can compare the effects of market volatilities on INTER CARS 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 INTER CARS with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Agilent Technologies.
Diversification Opportunities for INTER CARS and Agilent Technologies
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTER and Agilent is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and INTER CARS 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 INTER CARS SA 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 INTER CARS i.e., INTER CARS and Agilent Technologies go up and down completely randomly.
Pair Corralation between INTER CARS and Agilent Technologies
Assuming the 90 days horizon INTER CARS is expected to generate 1.15 times less return on investment than Agilent Technologies. In addition to that, INTER CARS is 1.74 times more volatile than Agilent Technologies. It trades about 0.13 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.26 per unit of volatility. If you would invest 13,175 in Agilent Technologies on October 16, 2024 and sell it today you would earn a total of 671.00 from holding Agilent Technologies or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. Agilent Technologies
Performance |
| Timeline |
| INTER CARS SA |
| Agilent Technologies |
INTER CARS and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Agilent Technologies
The main advantage of trading using opposite INTER CARS and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS 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.| INTER CARS vs. American Eagle Outfitters | INTER CARS vs. CVW CLEANTECH INC | INTER CARS vs. Iridium Communications | INTER CARS vs. Charter Communications |
| Agilent Technologies vs. INTER CARS SA | Agilent Technologies vs. United Natural Foods | Agilent Technologies vs. CN MODERN DAIRY | Agilent Technologies vs. CarsalesCom |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |