Correlation Between Agilent Technologies and Inari Medical
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Inari Medical 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 Inari Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Inari Medical, you can compare the effects of market volatilities on Agilent Technologies and Inari Medical 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 Inari Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Inari Medical.
Diversification Opportunities for Agilent Technologies and Inari Medical
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and Inari is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Inari Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inari Medical 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 Inari Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inari Medical has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Inari Medical go up and down completely randomly.
Pair Corralation between Agilent Technologies and Inari Medical
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.51 times more return on investment than Inari Medical. However, Agilent Technologies is 1.97 times less risky than Inari Medical. It trades about -0.01 of its potential returns per unit of risk. Inari Medical is currently generating about -0.01 per unit of risk. If you would invest 15,061 in Agilent Technologies on August 24, 2024 and sell it today you would lose (1,677) from holding Agilent Technologies or give up 11.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Inari Medical
Performance |
| Timeline |
| Agilent Technologies |
| Inari Medical |
Agilent Technologies and Inari Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Inari Medical
The main advantage of trading using opposite Agilent Technologies and Inari Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Inari Medical 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 Inari Medical will offset losses from the drop in Inari Medical's long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Inari Medical vs. Outset Medical | Inari Medical vs. Legend Biotech Corp | Inari Medical vs. Progyny | Inari Medical vs. Axonics Modulation Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |