Correlation Between Agilent Technologies and STRATA Skin
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and STRATA Skin 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 STRATA Skin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and STRATA Skin Sciences, you can compare the effects of market volatilities on Agilent Technologies and STRATA Skin 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 STRATA Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and STRATA Skin.
Diversification Opportunities for Agilent Technologies and STRATA Skin
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and STRATA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and STRATA Skin Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATA Skin Sciences 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 STRATA Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATA Skin Sciences has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and STRATA Skin go up and down completely randomly.
Pair Corralation between Agilent Technologies and STRATA Skin
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the STRATA Skin. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 2.38 times less risky than STRATA Skin. The stock trades about -0.11 of its potential returns per unit of risk. The STRATA Skin Sciences is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 320.00 in STRATA Skin Sciences on August 27, 2024 and sell it today you would lose (26.00) from holding STRATA Skin Sciences or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. STRATA Skin Sciences
Performance |
| Timeline |
| Agilent Technologies |
| STRATA Skin Sciences |
Agilent Technologies and STRATA Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and STRATA Skin
The main advantage of trading using opposite Agilent Technologies and STRATA Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, STRATA Skin 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 STRATA Skin will offset losses from the drop in STRATA Skin's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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