Correlation Between Fulcrum Metals and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Fulcrum Metals 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 Fulcrum Metals and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fulcrum Metals PLC and Agilent Technologies, you can compare the effects of market volatilities on Fulcrum Metals 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 Fulcrum Metals with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fulcrum Metals and Agilent Technologies.
Diversification Opportunities for Fulcrum Metals and Agilent Technologies
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fulcrum and Agilent is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fulcrum Metals PLC and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Fulcrum Metals 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 Fulcrum Metals PLC 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 Fulcrum Metals i.e., Fulcrum Metals and Agilent Technologies go up and down completely randomly.
Pair Corralation between Fulcrum Metals and Agilent Technologies
Assuming the 90 days trading horizon Fulcrum Metals is expected to generate 1.39 times less return on investment than Agilent Technologies. In addition to that, Fulcrum Metals is 1.17 times more volatile than Agilent Technologies. It trades about 0.27 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.44 per unit of volatility. If you would invest 13,377 in Agilent Technologies on October 29, 2024 and sell it today you would earn a total of 1,861 from holding Agilent Technologies or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fulcrum Metals PLC vs. Agilent Technologies
Performance |
| Timeline |
| Fulcrum Metals PLC |
| Agilent Technologies |
Fulcrum Metals and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fulcrum Metals and Agilent Technologies
The main advantage of trading using opposite Fulcrum Metals and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulcrum Metals 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.| Fulcrum Metals vs. Givaudan SA | Fulcrum Metals vs. Atalaya Mining | Fulcrum Metals vs. Central Asia Metals | Fulcrum Metals vs. Metals Exploration Plc |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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