Correlation Between Superior Plus and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Agilent Technologies, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Agilent Technologies.
Diversification Opportunities for Superior Plus and Agilent Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Superior and Agilent is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and Agilent Technologies go up and down completely randomly.
Pair Corralation between Superior Plus and Agilent Technologies
Assuming the 90 days horizon Superior Plus is expected to generate 2.54 times less return on investment than Agilent Technologies. In addition to that, Superior Plus is 2.04 times more volatile than Agilent Technologies. It trades about 0.03 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.15 per unit of volatility. If you would invest 11,926 in Agilent Technologies on September 1, 2024 and sell it today you would earn a total of 940.00 from holding Agilent Technologies or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. Agilent Technologies
Performance |
| Timeline |
| Superior Plus Corp |
| Agilent Technologies |
Superior Plus and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Agilent Technologies
The main advantage of trading using opposite Superior Plus and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
| Agilent Technologies vs. Danaher | Agilent Technologies vs. SIEMENS HEALTH ADR050 | Agilent Technologies vs. DexCom Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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