Correlation Between Mettler Toledo and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Mettler Toledo 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 Mettler Toledo and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mettler Toledo International and Agilent Technologies, you can compare the effects of market volatilities on Mettler Toledo 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 Mettler Toledo with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mettler Toledo and Agilent Technologies.
Diversification Opportunities for Mettler Toledo and Agilent Technologies
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mettler and Agilent is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mettler Toledo International and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Mettler Toledo 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 Mettler Toledo International 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 Mettler Toledo i.e., Mettler Toledo and Agilent Technologies go up and down completely randomly.
Pair Corralation between Mettler Toledo and Agilent Technologies
Considering the 90-day investment horizon Mettler Toledo International is expected to under-perform the Agilent Technologies. In addition to that, Mettler Toledo is 1.15 times more volatile than Agilent Technologies. It trades about -0.01 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.0 per unit of volatility. If you would invest 14,928 in Agilent Technologies on August 27, 2024 and sell it today you would lose (1,544) from holding Agilent Technologies or give up 10.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mettler Toledo International vs. Agilent Technologies
Performance |
| Timeline |
| Mettler Toledo Inter |
| Agilent Technologies |
Mettler Toledo and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mettler Toledo and Agilent Technologies
The main advantage of trading using opposite Mettler Toledo and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mettler Toledo 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.| Mettler Toledo vs. IDEXX Laboratories | Mettler Toledo vs. Charles River Laboratories | Mettler Toledo vs. Agilent Technologies | Mettler Toledo vs. Revvity |
| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock Biotech | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Exagen Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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