Correlation Between Agilent Technologies and ISpecimen
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and ISpecimen 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 ISpecimen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and iSpecimen, you can compare the effects of market volatilities on Agilent Technologies and ISpecimen 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 ISpecimen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and ISpecimen.
Diversification Opportunities for Agilent Technologies and ISpecimen
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agilent and ISpecimen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ISpecimen go up and down completely randomly.
Pair Corralation between Agilent Technologies and ISpecimen
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.18 times more return on investment than ISpecimen. However, Agilent Technologies is 5.41 times less risky than ISpecimen. It trades about 0.04 of its potential returns per unit of risk. iSpecimen is currently generating about -0.02 per unit of risk. If you would invest 11,347 in Agilent Technologies on August 31, 2024 and sell it today you would earn a total of 2,450 from holding Agilent Technologies or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. iSpecimen
Performance |
| Timeline |
| Agilent Technologies |
| iSpecimen |
Agilent Technologies and ISpecimen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and ISpecimen
The main advantage of trading using opposite Agilent Technologies and ISpecimen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, ISpecimen 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 ISpecimen will offset losses from the drop in ISpecimen's long position.| Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. IQVIA Holdings | Agilent Technologies vs. Charles River Laboratories | Agilent Technologies vs. Revvity |
| ISpecimen vs. Fonar | ISpecimen vs. Castle Biosciences | ISpecimen vs. Exagen Inc | ISpecimen vs. OncoCyte Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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