Correlation Between Agilent Technologies and Illumina
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Illumina 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 Illumina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Illumina, you can compare the effects of market volatilities on Agilent Technologies and Illumina 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 Illumina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Illumina.
Diversification Opportunities for Agilent Technologies and Illumina
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilent and Illumina is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Illumina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Illumina 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 Illumina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Illumina has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Illumina go up and down completely randomly.
Pair Corralation between Agilent Technologies and Illumina
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.74 times more return on investment than Illumina. However, Agilent Technologies is 1.34 times less risky than Illumina. It trades about 0.05 of its potential returns per unit of risk. Illumina is currently generating about -0.04 per unit of risk. If you would invest 13,154 in Agilent Technologies on August 27, 2024 and sell it today you would earn a total of 230.00 from holding Agilent Technologies or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Illumina
Performance |
| Timeline |
| Agilent Technologies |
| Illumina |
Agilent Technologies and Illumina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Illumina
The main advantage of trading using opposite Agilent Technologies and Illumina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Illumina 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 Illumina will offset losses from the drop in Illumina's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| Illumina vs. Thermo Fisher Scientific | Illumina vs. Danaher | Illumina vs. Waters | Illumina vs. IDEXX Laboratories |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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