Correlation Between Agilent Technologies and GRI Bio
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and GRI Bio 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 GRI Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and GRI Bio, you can compare the effects of market volatilities on Agilent Technologies and GRI Bio 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 GRI Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and GRI Bio.
Diversification Opportunities for Agilent Technologies and GRI Bio
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and GRI is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and GRI Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRI Bio 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 GRI Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRI Bio has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and GRI Bio go up and down completely randomly.
Pair Corralation between Agilent Technologies and GRI Bio
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.13 times more return on investment than GRI Bio. However, Agilent Technologies is 7.66 times less risky than GRI Bio. It trades about 0.0 of its potential returns per unit of risk. GRI Bio is currently generating about -0.05 per unit of risk. If you would invest 15,085 in Agilent Technologies on August 30, 2024 and sell it today you would lose (1,271) from holding Agilent Technologies or give up 8.43% 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. GRI Bio
Performance |
| Timeline |
| Agilent Technologies |
| GRI Bio |
Agilent Technologies and GRI Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and GRI Bio
The main advantage of trading using opposite Agilent Technologies and GRI Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, GRI Bio 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 GRI Bio will offset losses from the drop in GRI Bio's long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| GRI Bio vs. Agilent Technologies | GRI Bio vs. Equillium | GRI Bio vs. 23Andme Holding Co | GRI Bio vs. DiaMedica 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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