Correlation Between Agilent Technologies and Carmell Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Carmell Therapeutics 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 Carmell Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Carmell Therapeutics, you can compare the effects of market volatilities on Agilent Technologies and Carmell Therapeutics 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 Carmell Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Carmell Therapeutics.
Diversification Opportunities for Agilent Technologies and Carmell Therapeutics
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agilent and Carmell is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Carmell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmell Therapeutics 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 Carmell Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmell Therapeutics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Carmell Therapeutics go up and down completely randomly.
Pair Corralation between Agilent Technologies and Carmell Therapeutics
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.17 times more return on investment than Carmell Therapeutics. However, Agilent Technologies is 5.95 times less risky than Carmell Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Carmell Therapeutics is currently generating about -0.07 per unit of risk. If you would invest 13,660 in Agilent Technologies on September 12, 2024 and sell it today you would earn a total of 459.00 from holding Agilent Technologies or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Carmell Therapeutics
Performance |
| Timeline |
| Agilent Technologies |
| Carmell Therapeutics |
Agilent Technologies and Carmell Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Carmell Therapeutics
The main advantage of trading using opposite Agilent Technologies and Carmell Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Carmell Therapeutics 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 Carmell Therapeutics will offset losses from the drop in Carmell Therapeutics' long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Carmell Therapeutics vs. Revelation Biosciences | Carmell Therapeutics vs. Virax Biolabs Group | Carmell Therapeutics vs. Neurobo Pharmaceuticals | Carmell Therapeutics vs. Allarity Therapeutics |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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