Correlation Between Agilent Technologies and ENDESA ADR/
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and ENDESA ADR/ 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 ENDESA ADR/ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and ENDESA ADR 12, you can compare the effects of market volatilities on Agilent Technologies and ENDESA ADR/ 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 ENDESA ADR/. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and ENDESA ADR/.
Diversification Opportunities for Agilent Technologies and ENDESA ADR/
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and ENDESA is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and ENDESA ADR 12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENDESA ADR 12 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 ENDESA ADR/. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENDESA ADR 12 has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ENDESA ADR/ go up and down completely randomly.
Pair Corralation between Agilent Technologies and ENDESA ADR/
Assuming the 90 days horizon Agilent Technologies is expected to generate 1.12 times more return on investment than ENDESA ADR/. However, Agilent Technologies is 1.12 times more volatile than ENDESA ADR 12. It trades about 0.29 of its potential returns per unit of risk. ENDESA ADR 12 is currently generating about 0.17 per unit of risk. If you would invest 12,982 in Agilent Technologies on November 4, 2024 and sell it today you would earn a total of 1,134 from holding Agilent Technologies or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agilent Technologies vs. ENDESA ADR 12
Performance |
| Timeline |
| Agilent Technologies |
| ENDESA ADR 12 |
Agilent Technologies and ENDESA ADR/ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and ENDESA ADR/
The main advantage of trading using opposite Agilent Technologies and ENDESA ADR/ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, ENDESA ADR/ 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 ENDESA ADR/ will offset losses from the drop in ENDESA ADR/'s long position.| Agilent Technologies vs. JSC Halyk bank | Agilent Technologies vs. COREBRIDGE FINANCIAL INC | Agilent Technologies vs. De Grey Mining | Agilent Technologies vs. PNC Financial Services |
| ENDESA ADR/ vs. SBM OFFSHORE | ENDESA ADR/ vs. WT OFFSHORE | ENDESA ADR/ vs. Extra Space Storage | ENDESA ADR/ vs. INFORMATION SVC GRP |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |