Correlation Between Agilent Technologies and Dentsply Sirona
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Dentsply Sirona 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 Dentsply Sirona into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Dentsply Sirona, you can compare the effects of market volatilities on Agilent Technologies and Dentsply Sirona 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 Dentsply Sirona. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Dentsply Sirona.
Diversification Opportunities for Agilent Technologies and Dentsply Sirona
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and Dentsply is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Dentsply Sirona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dentsply Sirona 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 Dentsply Sirona. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dentsply Sirona has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Dentsply Sirona go up and down completely randomly.
Pair Corralation between Agilent Technologies and Dentsply Sirona
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.63 times more return on investment than Dentsply Sirona. However, Agilent Technologies is 1.6 times less risky than Dentsply Sirona. It trades about 0.02 of its potential returns per unit of risk. Dentsply Sirona is currently generating about -0.09 per unit of risk. If you would invest 12,944 in Agilent Technologies on August 28, 2024 and sell it today you would earn a total of 505.00 from holding Agilent Technologies or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Dentsply Sirona
Performance |
| Timeline |
| Agilent Technologies |
| Dentsply Sirona |
Agilent Technologies and Dentsply Sirona Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Dentsply Sirona
The main advantage of trading using opposite Agilent Technologies and Dentsply Sirona positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Dentsply Sirona 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 Dentsply Sirona will offset losses from the drop in Dentsply Sirona's long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
| Dentsply Sirona vs. Merit Medical Systems | Dentsply Sirona vs. ICU Medical | Dentsply Sirona vs. The Cooper Companies, | Dentsply Sirona vs. AngioDynamics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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