Correlation Between EnGene Holdings and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both EnGene Holdings 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 EnGene Holdings and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between enGene Holdings Common and Agilent Technologies, you can compare the effects of market volatilities on EnGene Holdings 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 EnGene Holdings with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnGene Holdings and Agilent Technologies.
Diversification Opportunities for EnGene Holdings and Agilent Technologies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EnGene and Agilent is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding enGene Holdings Common and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and EnGene Holdings 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 enGene Holdings Common 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 EnGene Holdings i.e., EnGene Holdings and Agilent Technologies go up and down completely randomly.
Pair Corralation between EnGene Holdings and Agilent Technologies
Given the investment horizon of 90 days enGene Holdings Common is expected to under-perform the Agilent Technologies. In addition to that, EnGene Holdings is 1.57 times more volatile than Agilent Technologies. It trades about -0.24 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.08 per unit of volatility. If you would invest 13,019 in Agilent Technologies on August 26, 2024 and sell it today you would earn a total of 365.00 from holding Agilent Technologies or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
enGene Holdings Common vs. Agilent Technologies
Performance |
| Timeline |
| enGene Holdings Common |
| Agilent Technologies |
EnGene Holdings and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EnGene Holdings and Agilent Technologies
The main advantage of trading using opposite EnGene Holdings and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnGene Holdings 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.| EnGene Holdings vs. Beam Therapeutics | EnGene Holdings vs. Caribou Biosciences | EnGene Holdings vs. Intellia Therapeutics | EnGene Holdings vs. Sana Biotechnology |
| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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