Correlation Between Agilent Technologies and Biodesix
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Biodesix 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 Biodesix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Biodesix, you can compare the effects of market volatilities on Agilent Technologies and Biodesix 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 Biodesix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Biodesix.
Diversification Opportunities for Agilent Technologies and Biodesix
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Biodesix is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Biodesix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biodesix 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 Biodesix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biodesix has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Biodesix go up and down completely randomly.
Pair Corralation between Agilent Technologies and Biodesix
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.46 times more return on investment than Biodesix. However, Agilent Technologies is 2.15 times less risky than Biodesix. It trades about -0.42 of its potential returns per unit of risk. Biodesix is currently generating about -0.4 per unit of risk. If you would invest 15,096 in Agilent Technologies on November 28, 2024 and sell it today you would lose (1,649) from holding Agilent Technologies or give up 10.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Biodesix
Performance |
| Timeline |
| Agilent Technologies |
| Biodesix |
Agilent Technologies and Biodesix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Biodesix
The main advantage of trading using opposite Agilent Technologies and Biodesix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Biodesix 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 Biodesix will offset losses from the drop in Biodesix's long position.| Agilent Technologies vs. Thermo Fisher Scientific | Agilent Technologies vs. Danaher | Agilent Technologies vs. Waters | Agilent Technologies vs. IDEXX Laboratories |
| Biodesix vs. Aclaris Therapeutics | Biodesix vs. Castle Biosciences | Biodesix vs. Prenetics Global | Biodesix vs. DarioHealth Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |