Correlation Between G2D Investments and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both G2D Investments 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 G2D Investments and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G2D Investments and Agilent Technologies, you can compare the effects of market volatilities on G2D Investments 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 G2D Investments with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of G2D Investments and Agilent Technologies.
Diversification Opportunities for G2D Investments and Agilent Technologies
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between G2D and Agilent is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding G2D Investments and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and G2D Investments 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 G2D Investments 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 G2D Investments i.e., G2D Investments and Agilent Technologies go up and down completely randomly.
Pair Corralation between G2D Investments and Agilent Technologies
Assuming the 90 days trading horizon G2D Investments is expected to under-perform the Agilent Technologies. In addition to that, G2D Investments is 1.89 times more volatile than Agilent Technologies. It trades about -0.02 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.32 per unit of volatility. If you would invest 37,836 in Agilent Technologies on August 30, 2024 and sell it today you would earn a total of 2,451 from holding Agilent Technologies or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G2D Investments vs. Agilent Technologies
Performance |
| Timeline |
| G2D Investments |
| Agilent Technologies |
G2D Investments and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G2D Investments and Agilent Technologies
The main advantage of trading using opposite G2D Investments and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G2D Investments 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.| G2D Investments vs. Ameriprise Financial | G2D Investments vs. Bradespar SA | G2D Investments vs. Bradespar SA | G2D Investments vs. Habitat Ii |
| Agilent Technologies vs. Brpr Corporate Offices | Agilent Technologies vs. Take Two Interactive Software | Agilent Technologies vs. Capital One Financial | Agilent Technologies vs. British American Tobacco |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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