Correlation Between Palantir Technologies and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Palantir Technologies 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 Palantir Technologies and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Palantir Technologies and Agilent Technologies, you can compare the effects of market volatilities on Palantir Technologies 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 Palantir Technologies with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and Agilent Technologies.
Diversification Opportunities for Palantir Technologies and Agilent Technologies
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Palantir and Agilent is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Palantir Technologies 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 Palantir Technologies 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 Palantir Technologies i.e., Palantir Technologies and Agilent Technologies go up and down completely randomly.
Pair Corralation between Palantir Technologies and Agilent Technologies
Assuming the 90 days trading horizon Palantir Technologies is expected to generate 5.74 times more return on investment than Agilent Technologies. However, Palantir Technologies is 5.74 times more volatile than Agilent Technologies. It trades about 0.39 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.32 per unit of risk. If you would invest 8,606 in Palantir Technologies on August 30, 2024 and sell it today you would earn a total of 4,441 from holding Palantir Technologies or generate 51.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Palantir Technologies vs. Agilent Technologies
Performance |
| Timeline |
| Palantir Technologies |
| Agilent Technologies |
Palantir Technologies and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Palantir Technologies and Agilent Technologies
The main advantage of trading using opposite Palantir Technologies and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Palantir Technologies 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.| Palantir Technologies vs. BTG Pactual Logstica | Palantir Technologies vs. Plano Plano Desenvolvimento | Palantir Technologies vs. The Procter Gamble | Palantir Technologies vs. Cable One |
| Agilent Technologies vs. Brpr Corporate Offices | Agilent Technologies vs. Take Two Interactive Software | Agilent Technologies vs. Capital One Financial | Agilent Technologies vs. British American Tobacco |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |