Correlation Between Agilent Technologies and Leap Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Leap Therapeutics 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 Leap Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Leap Therapeutics, you can compare the effects of market volatilities on Agilent Technologies and Leap Therapeutics 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 Leap Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Leap Therapeutics.
Diversification Opportunities for Agilent Technologies and Leap Therapeutics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Leap is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Leap Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leap Therapeutics 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 Leap Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leap Therapeutics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Leap Therapeutics go up and down completely randomly.
Pair Corralation between Agilent Technologies and Leap Therapeutics
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.39 times more return on investment than Leap Therapeutics. However, Agilent Technologies is 2.55 times less risky than Leap Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Leap Therapeutics is currently generating about -0.46 per unit of risk. If you would invest 13,154 in Agilent Technologies on August 28, 2024 and sell it today you would earn a total of 295.00 from holding Agilent Technologies or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agilent Technologies vs. Leap Therapeutics
Performance |
| Timeline |
| Agilent Technologies |
| Leap Therapeutics |
Agilent Technologies and Leap Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Leap Therapeutics
The main advantage of trading using opposite Agilent Technologies and Leap Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Leap Therapeutics 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 Leap Therapeutics will offset losses from the drop in Leap Therapeutics' long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| Leap Therapeutics vs. X4 Pharmaceuticals | Leap Therapeutics vs. Terns Pharmaceuticals | Leap Therapeutics vs. Day One Biopharmaceuticals | Leap Therapeutics vs. PDS Biotechnology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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