Correlation Between Genetron Holdings and Agilent Technologies

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

Diversification Opportunities for Genetron Holdings and Agilent Technologies

-0.33
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Genetron Holdings and Agilent Technologies

Considering the 90-day investment horizon Genetron Holdings is expected to under-perform the Agilent Technologies. In addition to that, Genetron Holdings is 2.86 times more volatile than Agilent Technologies. It trades about -0.09 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.03 per unit of volatility. If you would invest  10,950  in Agilent Technologies on July 8, 2022 and sell it today you would earn a total of  2,314  from holding Agilent Technologies or generate 21.13% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Genetron Holdings Ltd  vs.  Agilent Technologies

 Performance (%) 
       Timeline  
Genetron Holdings 
Genetron Performance
0 of 100
Over the last 90 days Genetron Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Genetron Price Channel

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

Agilent Price Channel

Genetron Holdings and Agilent Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Genetron Holdings and Agilent Technologies

The main advantage of trading using opposite Genetron Holdings and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genetron Holdings 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.
Genetron Holdings vs. Amazon Inc
The idea behind Genetron Holdings 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.
Agilent Technologies 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go