Correlation Between Agilent Technologies and IQVIA Holdings
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and IQVIA Holdings 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 IQVIA Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and IQVIA Holdings, you can compare the effects of market volatilities on Agilent Technologies and IQVIA Holdings 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 IQVIA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and IQVIA Holdings.
Diversification Opportunities for Agilent Technologies and IQVIA Holdings
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agilent and IQVIA is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and IQVIA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQVIA Holdings 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 IQVIA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQVIA Holdings has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and IQVIA Holdings go up and down completely randomly.
Pair Corralation between Agilent Technologies and IQVIA Holdings
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.88 times more return on investment than IQVIA Holdings. However, Agilent Technologies is 1.13 times less risky than IQVIA Holdings. It trades about 0.45 of its potential returns per unit of risk. IQVIA Holdings is currently generating about 0.11 per unit of risk. If you would invest 13,343 in Agilent Technologies on November 2, 2024 and sell it today you would earn a total of 1,795 from holding Agilent Technologies or generate 13.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. IQVIA Holdings
Performance |
| Timeline |
| Agilent Technologies |
| IQVIA Holdings |
Agilent Technologies and IQVIA Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and IQVIA Holdings
The main advantage of trading using opposite Agilent Technologies and IQVIA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, IQVIA Holdings 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 IQVIA Holdings will offset losses from the drop in IQVIA Holdings' long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| IQVIA Holdings vs. Charles River Laboratories | IQVIA Holdings vs. Laboratory of | IQVIA Holdings vs. Medpace Holdings | IQVIA Holdings vs. Waters |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |