Correlation Between Fair Oaks and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Fair Oaks 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 Fair Oaks and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fair Oaks Income and Agilent Technologies, you can compare the effects of market volatilities on Fair Oaks 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 Fair Oaks with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fair Oaks and Agilent Technologies.
Diversification Opportunities for Fair Oaks and Agilent Technologies
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fair and Agilent is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Fair Oaks Income and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Fair Oaks 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 Fair Oaks Income 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 Fair Oaks i.e., Fair Oaks and Agilent Technologies go up and down completely randomly.
Pair Corralation between Fair Oaks and Agilent Technologies
If you would invest 57.00 in Fair Oaks Income on October 11, 2024 and sell it today you would earn a total of 0.00 from holding Fair Oaks Income or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Fair Oaks Income vs. Agilent Technologies
Performance |
| Timeline |
| Fair Oaks Income |
| Agilent Technologies |
Fair Oaks and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fair Oaks and Agilent Technologies
The main advantage of trading using opposite Fair Oaks and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fair Oaks 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.| Fair Oaks vs. Toyota Motor Corp | Fair Oaks vs. OTP Bank Nyrt | Fair Oaks vs. Newmont Corp | Fair Oaks vs. ONEOK Inc |
| Agilent Technologies vs. Fair Oaks Income | Agilent Technologies vs. Qurate Retail Series | Agilent Technologies vs. Cairo Communication SpA | Agilent Technologies vs. Finnair Oyj |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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