Correlation Between Agilent Technologies and Guardant Health
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Guardant Health 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 Guardant Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Guardant Health, you can compare the effects of market volatilities on Agilent Technologies and Guardant Health 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 Guardant Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Guardant Health.
Diversification Opportunities for Agilent Technologies and Guardant Health
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agilent and Guardant is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Guardant Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardant Health 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 Guardant Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardant Health has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Guardant Health go up and down completely randomly.
Pair Corralation between Agilent Technologies and Guardant Health
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Guardant Health. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 3.73 times less risky than Guardant Health. The stock trades about -0.27 of its potential returns per unit of risk. The Guardant Health is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Guardant Health on January 24, 2024 and sell it today you would earn a total of 46.00 from holding Guardant Health or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Guardant Health
Performance |
| Timeline |
| Agilent Technologies |
| Guardant Health |
Agilent Technologies and Guardant Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Guardant Health
The main advantage of trading using opposite Agilent Technologies and Guardant Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Guardant Health 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 Guardant Health will offset losses from the drop in Guardant Health's long position.| Agilent Technologies vs. Nuvation Bio | Agilent Technologies vs. Lyell Immunopharma | Agilent Technologies vs. Century Therapeutics | Agilent Technologies vs. Generation BioCo |
| Guardant Health vs. Illumina | Guardant Health vs. Twist Bioscience Corp | Guardant Health vs. Natera Inc | Guardant Health vs. Caredx 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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |