Correlation Between Agilent Technologies and CEL SCI
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and CEL SCI 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 CEL SCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and CEL SCI Corp, you can compare the effects of market volatilities on Agilent Technologies and CEL SCI 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 CEL SCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and CEL SCI.
Diversification Opportunities for Agilent Technologies and CEL SCI
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and CEL is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and CEL SCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEL SCI 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 CEL SCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEL SCI Corp has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and CEL SCI go up and down completely randomly.
Pair Corralation between Agilent Technologies and CEL SCI
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.38 times more return on investment than CEL SCI. However, Agilent Technologies is 2.62 times less risky than CEL SCI. It trades about -0.04 of its potential returns per unit of risk. CEL SCI Corp is currently generating about -0.21 per unit of risk. If you would invest 14,027 in Agilent Technologies on August 26, 2024 and sell it today you would lose (643.00) from holding Agilent Technologies or give up 4.58% 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. CEL SCI Corp
Performance |
| Timeline |
| Agilent Technologies |
| CEL SCI Corp |
Agilent Technologies and CEL SCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and CEL SCI
The main advantage of trading using opposite Agilent Technologies and CEL SCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, CEL SCI 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 CEL SCI will offset losses from the drop in CEL SCI's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |