Correlation Between Aspira Womans and Agilent Technologies

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

Diversification Opportunities for Aspira Womans and Agilent Technologies

0.33
  Correlation Coefficient

Weak diversification

The 3 months correlation between Aspira and Agilent is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womans Health and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Aspira Womans 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 Aspira Womans Health 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 Aspira Womans i.e., Aspira Womans and Agilent Technologies go up and down completely randomly.

Pair Corralation between Aspira Womans and Agilent Technologies

Considering the 90-day investment horizon Aspira Womans Health is expected to under-perform the Agilent Technologies. In addition to that, Aspira Womans is 3.7 times more volatile than Agilent Technologies. It trades about -0.01 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.05 per unit of volatility. If you would invest  9,668  in Agilent Technologies on May 10, 2022 and sell it today you would earn a total of  3,693  from holding Agilent Technologies or generate 38.2% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Aspira Womans Health  vs.  Agilent Technologies

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

Aspira Price Channel

Agilent Technologies 
Agilent Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 8 (%) 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

Aspira Womans and Agilent Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aspira Womans and Agilent Technologies

The main advantage of trading using opposite Aspira Womans and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspira Womans 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.
The idea behind Aspira Womans Health and Agilent Technologies 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go