Correlation Between DAX Index and Agilent Technologies
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By analyzing existing cross correlation between DAX Index and Agilent Technologies, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Agilent Technologies.
Diversification Opportunities for DAX Index and Agilent Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between DAX and Agilent is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Agilent Technologies go up and down completely randomly.
Pair Corralation between DAX Index and Agilent Technologies
Assuming the 90 days trading horizon DAX Index is expected to generate 0.44 times more return on investment than Agilent Technologies. However, DAX Index is 2.25 times less risky than Agilent Technologies. It trades about 0.08 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.0 per unit of risk. If you would invest 1,449,789 in DAX Index on September 3, 2024 and sell it today you would earn a total of 543,573 from holding DAX Index or generate 37.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Agilent Technologies
Performance |
| Timeline |
DAX Index and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Agilent Technologies
Pair trading matchups for Agilent Technologies
Pair Trading with DAX Index and Agilent Technologies
The main advantage of trading using opposite DAX Index and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. SPORT LISBOA E | DAX Index vs. FUYO GENERAL LEASE | DAX Index vs. Live Nation Entertainment | DAX Index vs. Transport International Holdings |
| Agilent Technologies vs. Thermo Fisher Scientific | Agilent Technologies vs. Danaher | Agilent Technologies vs. Danaher | Agilent Technologies vs. SIEMENS HEALTH ADR050 |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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