Correlation Between Agilent Technologies and CONAGRA FOODS
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and CONAGRA FOODS 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 CONAGRA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and CONAGRA FOODS, you can compare the effects of market volatilities on Agilent Technologies and CONAGRA FOODS 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 CONAGRA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and CONAGRA FOODS.
Diversification Opportunities for Agilent Technologies and CONAGRA FOODS
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agilent and CONAGRA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and CONAGRA FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONAGRA FOODS 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 CONAGRA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONAGRA FOODS has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and CONAGRA FOODS go up and down completely randomly.
Pair Corralation between Agilent Technologies and CONAGRA FOODS
Assuming the 90 days horizon Agilent Technologies is expected to generate 1.4 times more return on investment than CONAGRA FOODS. However, Agilent Technologies is 1.4 times more volatile than CONAGRA FOODS. It trades about 0.01 of its potential returns per unit of risk. CONAGRA FOODS is currently generating about -0.02 per unit of risk. If you would invest 13,991 in Agilent Technologies on October 16, 2024 and sell it today you would lose (145.00) from holding Agilent Technologies or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. CONAGRA FOODS
Performance |
| Timeline |
| Agilent Technologies |
| CONAGRA FOODS |
Agilent Technologies and CONAGRA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and CONAGRA FOODS
The main advantage of trading using opposite Agilent Technologies and CONAGRA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, CONAGRA FOODS 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 CONAGRA FOODS will offset losses from the drop in CONAGRA FOODS's long position.| Agilent Technologies vs. FIREWEED METALS P | Agilent Technologies vs. Datadog | Agilent Technologies vs. Data Modul AG | Agilent Technologies vs. MICRONIC MYDATA |
| CONAGRA FOODS vs. Alfa Financial Software | CONAGRA FOODS vs. PKSHA TECHNOLOGY INC | CONAGRA FOODS vs. MAGNUM MINING EXP | CONAGRA FOODS vs. Sunny Optical Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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