Correlation Between LESTE FDO and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both LESTE FDO 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 LESTE FDO and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LESTE FDO INV and Agilent Technologies, you can compare the effects of market volatilities on LESTE FDO 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 LESTE FDO with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of LESTE FDO and Agilent Technologies.
Diversification Opportunities for LESTE FDO and Agilent Technologies
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LESTE and Agilent is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding LESTE FDO INV and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and LESTE FDO 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 LESTE FDO INV 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 LESTE FDO i.e., LESTE FDO and Agilent Technologies go up and down completely randomly.
Pair Corralation between LESTE FDO and Agilent Technologies
Assuming the 90 days trading horizon LESTE FDO INV is expected to under-perform the Agilent Technologies. But the fund apears to be less risky and, when comparing its historical volatility, LESTE FDO INV is 1.52 times less risky than Agilent Technologies. The fund trades about -0.02 of its potential returns per unit of risk. The Agilent Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 39,210 in Agilent Technologies on September 13, 2024 and sell it today you would earn a total of 1,077 from holding Agilent Technologies or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 73.68% |
| Values | Daily Returns |
LESTE FDO INV vs. Agilent Technologies
Performance |
| Timeline |
| LESTE FDO INV |
| Agilent Technologies |
LESTE FDO and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LESTE FDO and Agilent Technologies
The main advantage of trading using opposite LESTE FDO and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LESTE FDO 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.| LESTE FDO vs. Brio Multiestrategi Fundo | LESTE FDO vs. HEDGE SEED FUNDO | LESTE FDO vs. XP Hoteis Fundo | LESTE FDO vs. EXES FUNDO DE |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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