Correlation Between Agilent Technologies and Structure Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Structure 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 Structure 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 Structure Therapeutics American, you can compare the effects of market volatilities on Agilent Technologies and Structure 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 Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Structure Therapeutics.
Diversification Opportunities for Agilent Technologies and Structure Therapeutics
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and Structure is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure 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 Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Structure Therapeutics go up and down completely randomly.
Pair Corralation between Agilent Technologies and Structure Therapeutics
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Structure Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 3.99 times less risky than Structure Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The Structure Therapeutics American is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Structure Therapeutics American on August 28, 2024 and sell it today you would earn a total of 1,901 from holding Structure Therapeutics American or generate 126.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.32% |
| Values | Daily Returns |
Agilent Technologies vs. Structure Therapeutics America
Performance |
| Timeline |
| Agilent Technologies |
| Structure Therapeutics |
Agilent Technologies and Structure Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Structure Therapeutics
The main advantage of trading using opposite Agilent Technologies and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Structure 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| Structure Therapeutics vs. Day One Biopharmaceuticals | Structure Therapeutics vs. X4 Pharmaceuticals | Structure Therapeutics vs. Inozyme Pharma | Structure Therapeutics vs. Acumen 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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