Correlation Between Shattuck Labs and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Shattuck Labs 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 Shattuck Labs and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shattuck Labs and Agilent Technologies, you can compare the effects of market volatilities on Shattuck Labs 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 Shattuck Labs with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shattuck Labs and Agilent Technologies.
Diversification Opportunities for Shattuck Labs and Agilent Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shattuck and Agilent is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Shattuck Labs and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Shattuck Labs 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 Shattuck Labs 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 Shattuck Labs i.e., Shattuck Labs and Agilent Technologies go up and down completely randomly.
Pair Corralation between Shattuck Labs and Agilent Technologies
Given the investment horizon of 90 days Shattuck Labs is expected to generate 1.27 times less return on investment than Agilent Technologies. In addition to that, Shattuck Labs is 3.34 times more volatile than Agilent Technologies. It trades about 0.06 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.25 per unit of volatility. If you would invest 12,692 in Agilent Technologies on September 18, 2024 and sell it today you would earn a total of 954.00 from holding Agilent Technologies or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shattuck Labs vs. Agilent Technologies
Performance |
| Timeline |
| Shattuck Labs |
| Agilent Technologies |
Shattuck Labs and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shattuck Labs and Agilent Technologies
The main advantage of trading using opposite Shattuck Labs and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shattuck Labs 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.| Shattuck Labs vs. C4 Therapeutics | Shattuck Labs vs. Prelude Therapeutics | Shattuck Labs vs. Monte Rosa Therapeutics | Shattuck Labs vs. Foghorn Therapeutics |
| Agilent Technologies vs. Molecular Partners AG | Agilent Technologies vs. MediciNova | Agilent Technologies vs. Anebulo Pharmaceuticals | Agilent Technologies vs. Shattuck Labs |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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