Correlation Between Agilent Technologies and Akanda Corp
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Akanda Corp 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 Akanda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Akanda Corp, you can compare the effects of market volatilities on Agilent Technologies and Akanda Corp 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 Akanda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Akanda Corp.
Diversification Opportunities for Agilent Technologies and Akanda Corp
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and Akanda is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Akanda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akanda Corp 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 Akanda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akanda Corp has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Akanda Corp go up and down completely randomly.
Pair Corralation between Agilent Technologies and Akanda Corp
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.18 times more return on investment than Akanda Corp. However, Agilent Technologies is 5.67 times less risky than Akanda Corp. It trades about -0.01 of its potential returns per unit of risk. Akanda Corp is currently generating about -0.06 per unit of risk. If you would invest 15,061 in Agilent Technologies on August 24, 2024 and sell it today you would lose (1,677) from holding Agilent Technologies or give up 11.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Akanda Corp
Performance |
| Timeline |
| Agilent Technologies |
| Akanda Corp |
Agilent Technologies and Akanda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Akanda Corp
The main advantage of trading using opposite Agilent Technologies and Akanda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Akanda Corp 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 Akanda Corp will offset losses from the drop in Akanda Corp's long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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