Correlation Between Agilent Technologies and BANK RAKYAT
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and BANK RAKYAT 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 BANK RAKYAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and BANK RAKYAT IND, you can compare the effects of market volatilities on Agilent Technologies and BANK RAKYAT 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 BANK RAKYAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and BANK RAKYAT.
Diversification Opportunities for Agilent Technologies and BANK RAKYAT
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and BANK is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and BANK RAKYAT IND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK RAKYAT IND 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 BANK RAKYAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK RAKYAT IND has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and BANK RAKYAT go up and down completely randomly.
Pair Corralation between Agilent Technologies and BANK RAKYAT
If you would invest 12,209 in Agilent Technologies on November 8, 2024 and sell it today you would earn a total of 1,877 from holding Agilent Technologies or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Agilent Technologies vs. BANK RAKYAT IND
Performance |
| Timeline |
| Agilent Technologies |
| BANK RAKYAT IND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Agilent Technologies and BANK RAKYAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and BANK RAKYAT
The main advantage of trading using opposite Agilent Technologies and BANK RAKYAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, BANK RAKYAT 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 BANK RAKYAT will offset losses from the drop in BANK RAKYAT's long position.| Agilent Technologies vs. UNICREDIT SPA ADR | Agilent Technologies vs. SBI Insurance Group | Agilent Technologies vs. Meta Financial Group | Agilent Technologies vs. INSURANCE AUST GRP |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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