Correlation Between Lupatech and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Lupatech 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 Lupatech and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lupatech SA and Agilent Technologies, you can compare the effects of market volatilities on Lupatech 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 Lupatech with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lupatech and Agilent Technologies.
Diversification Opportunities for Lupatech and Agilent Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lupatech and Agilent is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Lupatech SA and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Lupatech 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 Lupatech SA 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 Lupatech i.e., Lupatech and Agilent Technologies go up and down completely randomly.
Pair Corralation between Lupatech and Agilent Technologies
Assuming the 90 days trading horizon Lupatech SA is expected to under-perform the Agilent Technologies. In addition to that, Lupatech is 2.24 times more volatile than Agilent Technologies. It trades about -0.04 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.07 per unit of volatility. If you would invest 33,896 in Agilent Technologies on August 26, 2024 and sell it today you would earn a total of 6,391 from holding Agilent Technologies or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.4% |
| Values | Daily Returns |
Lupatech SA vs. Agilent Technologies
Performance |
| Timeline |
| Lupatech SA |
| Agilent Technologies |
Lupatech and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lupatech and Agilent Technologies
The main advantage of trading using opposite Lupatech and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lupatech 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.| Lupatech vs. Mitsubishi UFJ Financial | Lupatech vs. Sumitomo Mitsui Financial | Lupatech vs. Toyota Motor | Lupatech vs. Banco Santander Chile |
| Agilent Technologies vs. Fras le SA | Agilent Technologies vs. Western Digital | Agilent Technologies vs. Clave Indices De | Agilent Technologies vs. BTG Pactual Logstica |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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