Correlation Between Agilent Technologies and TG Therapeutics
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and TG Therapeutics 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 TG Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and TG Therapeutics, you can compare the effects of market volatilities on Agilent Technologies and TG Therapeutics 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 TG Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and TG Therapeutics.
Diversification Opportunities for Agilent Technologies and TG Therapeutics
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and TGTX is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and TG Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Therapeutics 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 TG Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Therapeutics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and TG Therapeutics go up and down completely randomly.
Pair Corralation between Agilent Technologies and TG Therapeutics
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the TG Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 3.31 times less risky than TG Therapeutics. The stock trades about -0.01 of its potential returns per unit of risk. The TG Therapeutics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 831.00 in TG Therapeutics on August 28, 2024 and sell it today you would earn a total of 2,630 from holding TG Therapeutics or generate 316.49% 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. TG Therapeutics
Performance |
| Timeline |
| Agilent Technologies |
| TG Therapeutics |
Agilent Technologies and TG Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and TG Therapeutics
The main advantage of trading using opposite Agilent Technologies and TG Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, TG Therapeutics 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 TG Therapeutics will offset losses from the drop in TG Therapeutics' long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| TG Therapeutics vs. Eliem Therapeutics | TG Therapeutics vs. HCW Biologics | TG Therapeutics vs. Scpharmaceuticals | TG Therapeutics vs. Milestone Pharmaceuticals |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |