Correlation Between Exxon and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Exxon 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 Exxon and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil Corp and Agilent Technologies, you can compare the effects of market volatilities on Exxon 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 Exxon with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Agilent Technologies.
Diversification Opportunities for Exxon and Agilent Technologies
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Exxon and Agilent is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Exxon 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 Exxon Mobil Corp 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 Exxon i.e., Exxon and Agilent Technologies go up and down completely randomly.
Pair Corralation between Exxon and Agilent Technologies
Considering the 90-day investment horizon Exxon Mobil Corp is expected to generate 0.62 times more return on investment than Agilent Technologies. However, Exxon Mobil Corp is 1.63 times less risky than Agilent Technologies. It trades about 0.07 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.08 per unit of risk. If you would invest 11,972 in Exxon Mobil Corp on August 23, 2024 and sell it today you would earn a total of 196.00 from holding Exxon Mobil Corp or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Agilent Technologies
Performance |
| Timeline |
| Exxon Mobil Corp |
| Agilent Technologies |
Exxon and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Agilent Technologies
The main advantage of trading using opposite Exxon and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon 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.| Exxon vs. Chevron Corp | Exxon vs. Small Cap Core | Exxon vs. Freedom Holding Corp | Exxon vs. Gfl Environmental Holdings |
| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |