Correlation Between Agilent Technologies and ATMA Participacoes
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and ATMA Participacoes 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 ATMA Participacoes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and ATMA Participacoes SA, you can compare the effects of market volatilities on Agilent Technologies and ATMA Participacoes 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 ATMA Participacoes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and ATMA Participacoes.
Diversification Opportunities for Agilent Technologies and ATMA Participacoes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilent and ATMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and ATMA Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participacoes 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 ATMA Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participacoes has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ATMA Participacoes go up and down completely randomly.
Pair Corralation between Agilent Technologies and ATMA Participacoes
If you would invest 34,565 in Agilent Technologies on September 13, 2024 and sell it today you would earn a total of 5,722 from holding Agilent Technologies or generate 16.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Agilent Technologies vs. ATMA Participacoes SA
Performance |
| Timeline |
| Agilent Technologies |
| ATMA Participacoes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilent Technologies and ATMA Participacoes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and ATMA Participacoes
The main advantage of trading using opposite Agilent Technologies and ATMA Participacoes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, ATMA Participacoes 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 ATMA Participacoes will offset losses from the drop in ATMA Participacoes' 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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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