Correlation Between Agilent Technologies and Global Cord

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Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Global Cord 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 Global Cord into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Global Cord Blood, you can compare the effects of market volatilities on Agilent Technologies and Global Cord 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 Global Cord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Global Cord.

Diversification Opportunities for Agilent Technologies and Global Cord

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Agilent and Global is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Global Cord Blood in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Cord Blood 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 Global Cord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Cord Blood has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Global Cord go up and down completely randomly.

Pair Corralation between Agilent Technologies and Global Cord

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.45 times more return on investment than Global Cord. However, Agilent Technologies is 2.21 times less risky than Global Cord. It trades about 0.05 of its potential returns per unit of risk. Global Cord Blood is currently generating about 0.0 per unit of risk. If you would invest  9,633  in Agilent Technologies on May 9, 2022 and sell it today you would earn a total of  3,728  from holding Agilent Technologies or generate 38.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Agilent Technologies  vs.  Global Cord Blood

 Performance (%) 
       Timeline  
Agilent Technologies 
Agilent Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Agilent Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Agilent Price Channel

Global Cord Blood 
Global Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Global Cord Blood are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Global Cord disclosed solid returns over the last few months and may actually be approaching a breakup point.

Global Price Channel

Agilent Technologies and Global Cord Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agilent Technologies and Global Cord

The main advantage of trading using opposite Agilent Technologies and Global Cord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Global Cord 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 Global Cord will offset losses from the drop in Global Cord's long position.
The idea behind Agilent Technologies and Global Cord Blood 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.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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