Correlation Between Carmell Therapeutics and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Carmell Therapeutics 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 Carmell Therapeutics and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmell Therapeutics and Agilent Technologies, you can compare the effects of market volatilities on Carmell Therapeutics 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 Carmell Therapeutics with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmell Therapeutics and Agilent Technologies.
Diversification Opportunities for Carmell Therapeutics and Agilent Technologies
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carmell and Agilent is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Carmell Therapeutics and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Carmell Therapeutics 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 Carmell Therapeutics 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 Carmell Therapeutics i.e., Carmell Therapeutics and Agilent Technologies go up and down completely randomly.
Pair Corralation between Carmell Therapeutics and Agilent Technologies
Given the investment horizon of 90 days Carmell Therapeutics is expected to under-perform the Agilent Technologies. In addition to that, Carmell Therapeutics is 4.92 times more volatile than Agilent Technologies. It trades about -0.1 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.16 per unit of volatility. If you would invest 13,386 in Agilent Technologies on September 12, 2024 and sell it today you would earn a total of 733.00 from holding Agilent Technologies or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmell Therapeutics vs. Agilent Technologies
Performance |
| Timeline |
| Carmell Therapeutics |
| Agilent Technologies |
Carmell Therapeutics and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmell Therapeutics and Agilent Technologies
The main advantage of trading using opposite Carmell Therapeutics and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmell Therapeutics 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.| Carmell Therapeutics vs. Revelation Biosciences | Carmell Therapeutics vs. Virax Biolabs Group | Carmell Therapeutics vs. Neurobo Pharmaceuticals | Carmell Therapeutics vs. Allarity Therapeutics |
| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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