Correlation Between Agilent Technologies and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Burlington Stores 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 Burlington Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Burlington Stores, you can compare the effects of market volatilities on Agilent Technologies and Burlington Stores 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 Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Burlington Stores.
Diversification Opportunities for Agilent Technologies and Burlington Stores
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Agilent and Burlington is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores 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 Burlington Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Burlington Stores go up and down completely randomly.
Pair Corralation between Agilent Technologies and Burlington Stores
Assuming the 90 days horizon Agilent Technologies is expected to generate 0.58 times more return on investment than Burlington Stores. However, Agilent Technologies is 1.72 times less risky than Burlington Stores. It trades about 0.26 of its potential returns per unit of risk. Burlington Stores is currently generating about 0.05 per unit of risk. If you would invest 13,175 in Agilent Technologies on October 17, 2024 and sell it today you would earn a total of 725.00 from holding Agilent Technologies or generate 5.5% 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. Burlington Stores
Performance |
| Timeline |
| Agilent Technologies |
| Burlington Stores |
Agilent Technologies and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Burlington Stores
The main advantage of trading using opposite Agilent Technologies and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Burlington Stores 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 Burlington Stores will offset losses from the drop in Burlington Stores' long position.| Agilent Technologies vs. CENTURIA OFFICE REIT | Agilent Technologies vs. CITY OFFICE REIT | Agilent Technologies vs. OFFICE DEPOT | Agilent Technologies vs. H2O Retailing |
| Burlington Stores vs. NetSol Technologies | Burlington Stores vs. Digilife Technologies Limited | Burlington Stores vs. PKSHA TECHNOLOGY INC | Burlington Stores vs. Agilent 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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