Correlation Between Agilent Technologies and Inventiva
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Inventiva 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 Inventiva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Inventiva Sa, you can compare the effects of market volatilities on Agilent Technologies and Inventiva 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 Inventiva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Inventiva.
Diversification Opportunities for Agilent Technologies and Inventiva
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilent and Inventiva is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Inventiva Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inventiva Sa 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 Inventiva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inventiva Sa has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Inventiva go up and down completely randomly.
Pair Corralation between Agilent Technologies and Inventiva
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.02 times more return on investment than Inventiva. However, Agilent Technologies is 1.02 times more volatile than Inventiva Sa. It trades about 0.12 of its potential returns per unit of risk. Inventiva Sa is currently generating about -0.06 per unit of risk. If you would invest 13,149 in Agilent Technologies on August 31, 2024 and sell it today you would earn a total of 665.00 from holding Agilent Technologies or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Inventiva Sa
Performance |
| Timeline |
| Agilent Technologies |
| Inventiva Sa |
Agilent Technologies and Inventiva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Inventiva
The main advantage of trading using opposite Agilent Technologies and Inventiva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Inventiva 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 Inventiva will offset losses from the drop in Inventiva's long position.| Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. IQVIA Holdings | Agilent Technologies vs. Charles River Laboratories | Agilent Technologies vs. Revvity |
| Inventiva vs. Mineralys Therapeutics, Common | Inventiva vs. Eliem Therapeutics | Inventiva vs. Anebulo Pharmaceuticals | Inventiva vs. Janux 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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