Correlation Between Agilent Technologies and Schibsted ASA
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Schibsted ASA 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 Schibsted ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Schibsted ASA B, you can compare the effects of market volatilities on Agilent Technologies and Schibsted ASA 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 Schibsted ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Schibsted ASA.
Diversification Opportunities for Agilent Technologies and Schibsted ASA
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilent and Schibsted is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Schibsted ASA B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schibsted ASA B 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 Schibsted ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schibsted ASA B has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Schibsted ASA go up and down completely randomly.
Pair Corralation between Agilent Technologies and Schibsted ASA
Assuming the 90 days horizon Agilent Technologies is expected to generate 0.58 times more return on investment than Schibsted ASA. However, Agilent Technologies is 1.74 times less risky than Schibsted ASA. It trades about 0.25 of its potential returns per unit of risk. Schibsted ASA B is currently generating about -0.24 per unit of risk. If you would invest 13,175 in Agilent Technologies on October 16, 2024 and sell it today you would earn a total of 671.00 from holding Agilent Technologies or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Schibsted ASA B
Performance |
| Timeline |
| Agilent Technologies |
| Schibsted ASA B |
Agilent Technologies and Schibsted ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Schibsted ASA
The main advantage of trading using opposite Agilent Technologies and Schibsted ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Schibsted ASA 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 Schibsted ASA will offset losses from the drop in Schibsted ASA's long position.| Agilent Technologies vs. FIREWEED METALS P | Agilent Technologies vs. Datadog | Agilent Technologies vs. Data Modul AG | Agilent Technologies vs. MICRONIC MYDATA |
| Schibsted ASA vs. Coffee Holding Co | Schibsted ASA vs. FORWARD AIR P | Schibsted ASA vs. SYSTEMAIR AB | Schibsted ASA vs. Pentair plc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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