Correlation Between OFFICE DEPOT and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Agilent Technologies, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Agilent Technologies.
Diversification Opportunities for OFFICE DEPOT and Agilent Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Agilent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and Agilent Technologies go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Agilent Technologies
If you would invest 13,175 in Agilent Technologies on October 17, 2024 and sell it today you would earn a total of 725.00 from holding Agilent Technologies or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Agilent Technologies
Performance |
| Timeline |
| OFFICE DEPOT |
| Agilent Technologies |
OFFICE DEPOT and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Agilent Technologies
The main advantage of trading using opposite OFFICE DEPOT and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. UNIDOC HEALTH P | OFFICE DEPOT vs. American Eagle Outfitters | OFFICE DEPOT vs. URBAN OUTFITTERS | OFFICE DEPOT vs. EVS Broadcast Equipment |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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