Correlation Between Agilent Technologies and Exxon
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Exxon 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 Exxon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Exxon Mobil Corp, you can compare the effects of market volatilities on Agilent Technologies and Exxon 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 Exxon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Exxon.
Diversification Opportunities for Agilent Technologies and Exxon
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agilent and Exxon is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Exxon Mobil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil Corp 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 Exxon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil Corp has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Exxon go up and down completely randomly.
Pair Corralation between Agilent Technologies and Exxon
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Exxon. In addition to that, Agilent Technologies is 1.34 times more volatile than Exxon Mobil Corp. It trades about -0.04 of its total potential returns per unit of risk. Exxon Mobil Corp is currently generating about 0.05 per unit of volatility. If you would invest 11,301 in Exxon Mobil Corp on August 23, 2024 and sell it today you would earn a total of 867.00 from holding Exxon Mobil Corp or generate 7.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Exxon Mobil Corp
Performance |
| Timeline |
| Agilent Technologies |
| Exxon Mobil Corp |
Agilent Technologies and Exxon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Exxon
The main advantage of trading using opposite Agilent Technologies and Exxon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Exxon 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 Exxon will offset losses from the drop in Exxon's long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Exxon vs. Chevron Corp | Exxon vs. Small Cap Core | Exxon vs. Freedom Holding Corp | Exxon vs. Gfl Environmental Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |