Correlation Between Agilent Technologies and Phibro Animal
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Phibro Animal 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 Phibro Animal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Phibro Animal Health, you can compare the effects of market volatilities on Agilent Technologies and Phibro Animal 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 Phibro Animal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Phibro Animal.
Diversification Opportunities for Agilent Technologies and Phibro Animal
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Phibro is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Phibro Animal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phibro Animal Health 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 Phibro Animal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phibro Animal Health has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Phibro Animal go up and down completely randomly.
Pair Corralation between Agilent Technologies and Phibro Animal
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.89 times more return on investment than Phibro Animal. However, Agilent Technologies is 1.13 times less risky than Phibro Animal. It trades about 0.12 of its potential returns per unit of risk. Phibro Animal Health is currently generating about 0.01 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Phibro Animal Health
Performance |
| Timeline |
| Agilent Technologies |
| Phibro Animal Health |
Agilent Technologies and Phibro Animal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Phibro Animal
The main advantage of trading using opposite Agilent Technologies and Phibro Animal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Phibro Animal 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 Phibro Animal will offset losses from the drop in Phibro Animal's long position.| Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. IQVIA Holdings | Agilent Technologies vs. Charles River Laboratories | Agilent Technologies vs. Revvity |
| Phibro Animal vs. Bausch Health Companies | Phibro Animal vs. Neurocrine Biosciences | Phibro Animal vs. Haleon plc | Phibro Animal vs. Intracellular Th |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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