Correlation Between Agilent Technologies and Digilife Technologies
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Digilife Technologies 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 Digilife Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Digilife Technologies Limited, you can compare the effects of market volatilities on Agilent Technologies and Digilife Technologies 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 Digilife Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Digilife Technologies.
Diversification Opportunities for Agilent Technologies and Digilife Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Digilife is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Digilife Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digilife Technologies 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 Digilife Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digilife Technologies has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Digilife Technologies go up and down completely randomly.
Pair Corralation between Agilent Technologies and Digilife Technologies
Assuming the 90 days horizon Agilent Technologies is expected to generate 18.79 times less return on investment than Digilife Technologies. But when comparing it to its historical volatility, Agilent Technologies is 2.55 times less risky than Digilife Technologies. It trades about 0.0 of its potential returns per unit of risk. Digilife Technologies Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Digilife Technologies Limited on October 15, 2024 and sell it today you would lose (25.00) from holding Digilife Technologies Limited or give up 26.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Digilife Technologies Limited
Performance |
| Timeline |
| Agilent Technologies |
| Digilife Technologies |
Agilent Technologies and Digilife Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Digilife Technologies
The main advantage of trading using opposite Agilent Technologies and Digilife Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Digilife Technologies 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 Digilife Technologies will offset losses from the drop in Digilife Technologies' long position.| Agilent Technologies vs. INTER CARS SA | Agilent Technologies vs. United Natural Foods | Agilent Technologies vs. CN MODERN DAIRY | Agilent Technologies vs. CarsalesCom |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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