Correlation Between Agilent Technologies and Mettler Toledo
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Mettler Toledo 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 Mettler Toledo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Mettler Toledo International, you can compare the effects of market volatilities on Agilent Technologies and Mettler Toledo 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 Mettler Toledo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Mettler Toledo.
Diversification Opportunities for Agilent Technologies and Mettler Toledo
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Agilent and Mettler is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Mettler Toledo International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mettler Toledo Inter 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 Mettler Toledo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mettler Toledo Inter has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Mettler Toledo go up and down completely randomly.
Pair Corralation between Agilent Technologies and Mettler Toledo
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.88 times less return on investment than Mettler Toledo. But when comparing it to its historical volatility, Agilent Technologies is 1.28 times less risky than Mettler Toledo. It trades about 0.02 of its potential returns per unit of risk. Mettler Toledo International is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 109,193 in Mettler Toledo International on August 26, 2024 and sell it today you would earn a total of 12,604 from holding Mettler Toledo International or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Mettler Toledo International
Performance |
| Timeline |
| Agilent Technologies |
| Mettler Toledo Inter |
Agilent Technologies and Mettler Toledo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Mettler Toledo
The main advantage of trading using opposite Agilent Technologies and Mettler Toledo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Mettler Toledo 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 Mettler Toledo will offset losses from the drop in Mettler Toledo's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| Mettler Toledo vs. IDEXX Laboratories | Mettler Toledo vs. Charles River Laboratories | Mettler Toledo vs. Agilent Technologies | Mettler Toledo vs. Revvity |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |