Correlation Between Concurrent Technologies and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Concurrent Technologies and Agilent 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 Concurrent Technologies and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concurrent Technologies Plc and Agilent Technologies, you can compare the effects of market volatilities on Concurrent Technologies and Agilent 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 Concurrent Technologies with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concurrent Technologies and Agilent Technologies.
Diversification Opportunities for Concurrent Technologies and Agilent Technologies
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Concurrent and Agilent is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Concurrent Technologies Plc and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Concurrent 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 Concurrent Technologies Plc are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Concurrent Technologies i.e., Concurrent Technologies and Agilent Technologies go up and down completely randomly.
Pair Corralation between Concurrent Technologies and Agilent Technologies
Assuming the 90 days trading horizon Concurrent Technologies Plc is expected to generate 1.8 times more return on investment than Agilent Technologies. However, Concurrent Technologies is 1.8 times more volatile than Agilent Technologies. It trades about 0.02 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.2 per unit of risk. If you would invest 13,800 in Concurrent Technologies Plc on October 10, 2024 and sell it today you would earn a total of 50.00 from holding Concurrent Technologies Plc or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Concurrent Technologies Plc vs. Agilent Technologies
Performance |
| Timeline |
| Concurrent Technologies |
| Agilent Technologies |
Concurrent Technologies and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concurrent Technologies and Agilent Technologies
The main advantage of trading using opposite Concurrent Technologies and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concurrent Technologies position performs unexpectedly, Agilent 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 Agilent Technologies will offset losses from the drop in Agilent Technologies' long position.| Concurrent Technologies vs. Alien Metals | Concurrent Technologies vs. URU Metals | Concurrent Technologies vs. Gaztransport et Technigaz | Concurrent Technologies vs. Zurich Insurance Group |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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