Correlation Between Agilent Technologies and Hillevax

Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Hillevax 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 Hillevax into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agilent Technologies and Hillevax, you can compare the effects of market volatilities on Agilent Technologies and Hillevax 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 Hillevax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Hillevax.

Diversification Opportunities for Agilent Technologies and Hillevax

-0.2

Correlation Coefficient

Agilent Technologies  Hillevax

Good diversification

The 3 months correlation between Agilent and Hillevax is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Hillevax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillevax 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 Hillevax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillevax has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Hillevax go up and down completely randomly.

Pair Corralation between Agilent Technologies and Hillevax

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.59 times more return on investment than Hillevax. However, Agilent Technologies is 1.71 times less risky than Hillevax. It trades about 0.17 of its potential returns per unit of risk. Hillevax is currently generating about 0.01 per unit of risk. If you would invest  13,386  in Agilent Technologies on September 12, 2024 and sell it today you would earn a total of  807.00  from holding Agilent Technologies or generate 6.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Agilent Technologies  vs.  Hillevax

Agilent Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 3 (%) 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.

Hillevax

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hillevax are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Hillevax showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilent Technologies and Hillevax

The main advantage of trading using opposite Agilent Technologies and Hillevax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Hillevax 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 Hillevax will offset losses from the drop in Hillevax's long position.

The idea behind Agilent Technologies and Hillevax 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.

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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 Stocks Directory module to find actively traded stocks across global markets.