Correlation Between Agilent Technologies and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and ATRYS HEALTH 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 ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and ATRYS HEALTH SA, you can compare the effects of market volatilities on Agilent Technologies and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and ATRYS HEALTH.
Diversification Opportunities for Agilent Technologies and ATRYS HEALTH
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and ATRYS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Agilent Technologies and ATRYS HEALTH
Assuming the 90 days horizon Agilent Technologies is expected to generate 0.75 times more return on investment than ATRYS HEALTH. However, Agilent Technologies is 1.33 times less risky than ATRYS HEALTH. It trades about 0.19 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.09 per unit of risk. If you would invest 12,047 in Agilent Technologies on October 26, 2024 and sell it today you would earn a total of 2,589 from holding Agilent Technologies or generate 21.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Agilent Technologies |
| ATRYS HEALTH SA |
Agilent Technologies and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and ATRYS HEALTH
The main advantage of trading using opposite Agilent Technologies and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| Agilent Technologies vs. Thermo Fisher Scientific | Agilent Technologies vs. Siemens Healthineers AG | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. IQVIA Holdings |
| ATRYS HEALTH vs. Discover Financial Services | ATRYS HEALTH vs. MOLSON RS BEVERAGE | ATRYS HEALTH vs. The Boston Beer | ATRYS HEALTH vs. Synchrony Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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