Correlation Between Agilent Technologies and Ascendis Pharma
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Ascendis Pharma 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 Ascendis Pharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Ascendis Pharma AS, you can compare the effects of market volatilities on Agilent Technologies and Ascendis Pharma 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 Ascendis Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Ascendis Pharma.
Diversification Opportunities for Agilent Technologies and Ascendis Pharma
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and Ascendis is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Ascendis Pharma AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascendis Pharma AS 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 Ascendis Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascendis Pharma AS has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Ascendis Pharma go up and down completely randomly.
Pair Corralation between Agilent Technologies and Ascendis Pharma
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 0.56 times more return on investment than Ascendis Pharma. However, Agilent Technologies is 1.79 times less risky than Ascendis Pharma. It trades about 0.1 of its potential returns per unit of risk. Ascendis Pharma AS is currently generating about 0.05 per unit of risk. If you would invest 34,564 in Agilent Technologies on September 1, 2024 and sell it today you would earn a total of 5,723 from holding Agilent Technologies or generate 16.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Agilent Technologies vs. Ascendis Pharma AS
Performance |
| Timeline |
| Agilent Technologies |
| Ascendis Pharma AS |
Agilent Technologies and Ascendis Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Ascendis Pharma
The main advantage of trading using opposite Agilent Technologies and Ascendis Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Ascendis Pharma 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 Ascendis Pharma will offset losses from the drop in Ascendis Pharma's long position.| Agilent Technologies vs. Fras le SA | Agilent Technologies vs. Western Digital | Agilent Technologies vs. Energisa SA | Agilent Technologies vs. Clave Indices De |
| Ascendis Pharma vs. Raytheon Technologies | Ascendis Pharma vs. Bemobi Mobile Tech | Ascendis Pharma vs. Uber Technologies | Ascendis Pharma vs. Marvell 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| 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 | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |