Correlation Between Agilent Technologies and Bread Financial
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Bread Financial 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 Bread Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Bread Financial Holdings, you can compare the effects of market volatilities on Agilent Technologies and Bread Financial 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 Bread Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Bread Financial.
Diversification Opportunities for Agilent Technologies and Bread Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Agilent and Bread is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Bread Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bread Financial Holdings 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 Bread Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bread Financial Holdings has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Bread Financial go up and down completely randomly.
Pair Corralation between Agilent Technologies and Bread Financial
If you would invest 8,559 in Bread Financial Holdings on September 13, 2024 and sell it today you would earn a total of 1,271 from holding Bread Financial Holdings or generate 14.85% 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. Bread Financial Holdings
Performance |
| Timeline |
| Agilent Technologies |
| Bread Financial Holdings |
Agilent Technologies and Bread Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Bread Financial
The main advantage of trading using opposite Agilent Technologies and Bread Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Bread Financial 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 Bread Financial will offset losses from the drop in Bread Financial's long position.| Agilent Technologies vs. DexCom Inc | Agilent Technologies vs. Fundo Investimento Imobiliario | Agilent Technologies vs. LESTE FDO INV | Agilent Technologies vs. Fras le SA |
| Bread Financial vs. PayPal Holdings | Bread Financial vs. Capital One Financial | Bread Financial vs. Credit Acceptance | Bread Financial vs. Financeira Alfa SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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