Correlation Between Agilent Technologies and Extra Space
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Extra Space 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 Extra Space into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Extra Space Storage, you can compare the effects of market volatilities on Agilent Technologies and Extra Space 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 Extra Space. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Extra Space.
Diversification Opportunities for Agilent Technologies and Extra Space
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Extra is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Extra Space Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extra Space Storage 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 Extra Space. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extra Space Storage has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Extra Space go up and down completely randomly.
Pair Corralation between Agilent Technologies and Extra Space
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 2.91 times less return on investment than Extra Space. But when comparing it to its historical volatility, Agilent Technologies is 1.67 times less risky than Extra Space. It trades about 0.07 of its potential returns per unit of risk. Extra Space Storage is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16,667 in Extra Space Storage on September 2, 2024 and sell it today you would earn a total of 9,430 from holding Extra Space Storage or generate 56.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.83% |
| Values | Daily Returns |
Agilent Technologies vs. Extra Space Storage
Performance |
| Timeline |
| Agilent Technologies |
| Extra Space Storage |
Agilent Technologies and Extra Space Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Extra Space
The main advantage of trading using opposite Agilent Technologies and Extra Space positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Extra Space 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 Extra Space will offset losses from the drop in Extra Space'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 |
| Extra Space vs. BTG Pactual Logstica | Extra Space vs. Fras le SA | Extra Space vs. Western Digital | Extra Space vs. Energisa 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |