Correlation Between Agilent Technologies and Apple

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Apple 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 Agilent Technologies and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Apple Inc, you can compare the effects of market volatilities on Agilent Technologies and Apple 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 Agilent Technologies with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Apple.

Diversification Opportunities for Agilent Technologies and Apple

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Agilent and Apple is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Agilent 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 Agilent Technologies are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Apple go up and down completely randomly.

Pair Corralation between Agilent Technologies and Apple

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.7 times less return on investment than Apple. But when comparing it to its historical volatility, Agilent Technologies is 1.06 times less risky than Apple. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  11,595  in Apple Inc on July 1, 2022 and sell it today you would earn a total of  2,722  from holding Apple Inc or generate 23.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Agilent Technologies  vs.  Apple Inc

 Performance (%) 
       Timeline  
Agilent Technologies 
Agilent Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Agilent Price Channel

Apple Inc 
Apple Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Apple may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Apple Price Channel

Agilent Technologies and Apple Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agilent Technologies and Apple

The main advantage of trading using opposite Agilent Technologies and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.
Agilent Technologies vs. Amazon Inc
The idea behind Agilent Technologies and Apple Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Apple vs. Amazon 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go