Correlation Between Agilent Technologies and Newmont
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Newmont 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 Newmont into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Newmont, you can compare the effects of market volatilities on Agilent Technologies and Newmont 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 Newmont. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Newmont.
Diversification Opportunities for Agilent Technologies and Newmont
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilent and Newmont is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Newmont in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmont 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 Newmont. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmont has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Newmont go up and down completely randomly.
Pair Corralation between Agilent Technologies and Newmont
Assuming the 90 days trading horizon Agilent Technologies is expected to generate 1.37 times less return on investment than Newmont. But when comparing it to its historical volatility, Agilent Technologies is 1.13 times less risky than Newmont. It trades about 0.01 of its potential returns per unit of risk. Newmont is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 23,615 in Newmont on September 14, 2024 and sell it today you would earn a total of 1,645 from holding Newmont or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 74.13% |
| Values | Daily Returns |
Agilent Technologies vs. Newmont
Performance |
| Timeline |
| Agilent Technologies |
| Newmont |
Agilent Technologies and Newmont Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Newmont
The main advantage of trading using opposite Agilent Technologies and Newmont positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Newmont 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 Newmont will offset losses from the drop in Newmont'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 |
| Newmont vs. Paycom Software | Newmont vs. Lupatech SA | Newmont vs. Agilent Technologies | Newmont vs. Raytheon Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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