Correlation Between Equinix and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Equinix 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 Equinix and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equinix and Agilent Technologies, you can compare the effects of market volatilities on Equinix 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 Equinix with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equinix and Agilent Technologies.
Diversification Opportunities for Equinix and Agilent Technologies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Equinix and Agilent is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Equinix and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Equinix 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 Equinix 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 Equinix i.e., Equinix and Agilent Technologies go up and down completely randomly.
Pair Corralation between Equinix and Agilent Technologies
If you would invest 6,570 in Equinix on September 14, 2024 and sell it today you would earn a total of 739.00 from holding Equinix or generate 11.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equinix vs. Agilent Technologies
Performance |
| Timeline |
| Equinix |
| Agilent Technologies |
Equinix and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equinix and Agilent Technologies
The main advantage of trading using opposite Equinix and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equinix 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.| Equinix vs. Verizon Communications | Equinix vs. Prudential Financial | Equinix vs. salesforce inc | Equinix vs. Apartment Investment and |
| Agilent Technologies vs. DexCom Inc | Agilent Technologies vs. Fundo Investimento Imobiliario | Agilent Technologies vs. LESTE FDO INV | Agilent Technologies vs. Fras le SA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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