Correlation Between Sana Biotechnology and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Sana Biotechnology 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 Sana Biotechnology and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sana Biotechnology and Agilent Technologies, you can compare the effects of market volatilities on Sana Biotechnology 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 Sana Biotechnology with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sana Biotechnology and Agilent Technologies.
Diversification Opportunities for Sana Biotechnology and Agilent Technologies
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sana and Agilent is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sana Biotechnology and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Sana Biotechnology 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 Sana Biotechnology 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 Sana Biotechnology i.e., Sana Biotechnology and Agilent Technologies go up and down completely randomly.
Pair Corralation between Sana Biotechnology and Agilent Technologies
Given the investment horizon of 90 days Sana Biotechnology is expected to under-perform the Agilent Technologies. In addition to that, Sana Biotechnology is 3.42 times more volatile than Agilent Technologies. It trades about -0.23 of its total potential returns per unit of risk. Agilent Technologies is currently generating about -0.03 per unit of volatility. If you would invest 13,965 in Agilent Technologies on September 3, 2024 and sell it today you would lose (168.00) from holding Agilent Technologies or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sana Biotechnology vs. Agilent Technologies
Performance |
| Timeline |
| Sana Biotechnology |
| Agilent Technologies |
Sana Biotechnology and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sana Biotechnology and Agilent Technologies
The main advantage of trading using opposite Sana Biotechnology and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sana Biotechnology 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.| Sana Biotechnology vs. Olema Pharmaceuticals | Sana Biotechnology vs. Cullinan Oncology LLC | Sana Biotechnology vs. Zentalis Pharmaceuticals Llc | Sana Biotechnology vs. X4 Pharmaceuticals |
| Agilent Technologies vs. Danaher | Agilent Technologies vs. Guardant Health | Agilent Technologies vs. Charles River Laboratories |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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