Correlation Between Agilent Technologies and Oculis Holding
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Oculis Holding 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 Oculis Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Oculis Holding AG, you can compare the effects of market volatilities on Agilent Technologies and Oculis Holding 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 Oculis Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Oculis Holding.
Diversification Opportunities for Agilent Technologies and Oculis Holding
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and Oculis is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Oculis Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oculis Holding AG 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 Oculis Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oculis Holding AG has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Oculis Holding go up and down completely randomly.
Pair Corralation between Agilent Technologies and Oculis Holding
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 147.61 times less return on investment than Oculis Holding. But when comparing it to its historical volatility, Agilent Technologies is 49.69 times less risky than Oculis Holding. It trades about 0.03 of its potential returns per unit of risk. Oculis Holding AG is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Oculis Holding AG on September 3, 2024 and sell it today you would earn a total of 280.00 from holding Oculis Holding AG or generate 193.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.94% |
| Values | Daily Returns |
Agilent Technologies vs. Oculis Holding AG
Performance |
| Timeline |
| Agilent Technologies |
| Oculis Holding AG |
Agilent Technologies and Oculis Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Oculis Holding
The main advantage of trading using opposite Agilent Technologies and Oculis Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Oculis Holding 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 Oculis Holding will offset losses from the drop in Oculis Holding's long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Guardant Health | Agilent Technologies vs. Charles River Laboratories |
| Oculis Holding vs. DiaMedica Therapeutics | Oculis Holding vs. Lyra Therapeutics | Oculis Holding vs. Centessa Pharmaceuticals PLC |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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