Correlation Between DXC Technology and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and Agilent Technologies, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Agilent Technologies.
Diversification Opportunities for DXC Technology and Agilent Technologies
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DXC and Agilent is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and DXC Technology 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 DXC Technology 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 DXC Technology i.e., DXC Technology and Agilent Technologies go up and down completely randomly.
Pair Corralation between DXC Technology and Agilent Technologies
Assuming the 90 days trading horizon DXC Technology is expected to under-perform the Agilent Technologies. In addition to that, DXC Technology is 2.03 times more volatile than Agilent Technologies. It trades about -0.22 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.3 per unit of volatility. If you would invest 41,756 in Agilent Technologies on November 4, 2024 and sell it today you would earn a total of 2,510 from holding Agilent Technologies or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DXC Technology vs. Agilent Technologies
Performance |
| Timeline |
| DXC Technology |
| Agilent Technologies |
DXC Technology and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Agilent Technologies
The main advantage of trading using opposite DXC Technology and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Paycom Software | DXC Technology vs. Chunghwa Telecom Co, | DXC Technology vs. Verizon Communications | DXC Technology vs. Unity Software |
| Agilent Technologies vs. The Home Depot | Agilent Technologies vs. Verizon Communications | Agilent Technologies vs. Liberty Broadband | Agilent Technologies vs. Academy Sports and |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |