Correlation Between Qiagen NV and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Qiagen NV 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 Qiagen NV and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qiagen NV and Agilent Technologies, you can compare the effects of market volatilities on Qiagen NV 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 Qiagen NV with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qiagen NV and Agilent Technologies.
Diversification Opportunities for Qiagen NV and Agilent Technologies
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qiagen and Agilent is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Qiagen NV and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Qiagen NV 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 Qiagen NV 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 Qiagen NV i.e., Qiagen NV and Agilent Technologies go up and down completely randomly.
Pair Corralation between Qiagen NV and Agilent Technologies
Given the investment horizon of 90 days Qiagen NV is expected to under-perform the Agilent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Qiagen NV is 1.33 times less risky than Agilent Technologies. The stock trades about -0.01 of its potential returns per unit of risk. The Agilent Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qiagen NV vs. Agilent Technologies
Performance |
| Timeline |
| Qiagen NV |
| Agilent Technologies |
Qiagen NV and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qiagen NV and Agilent Technologies
The main advantage of trading using opposite Qiagen NV and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qiagen NV 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.| Qiagen NV vs. Neogen | Qiagen NV vs. Aclaris Therapeutics | Qiagen NV vs. IQVIA Holdings | Qiagen NV vs. Medpace Holdings |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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