Correlation Between ATT and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Agilent Technologies, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Agilent Technologies.
Diversification Opportunities for ATT and Agilent Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATT and Agilent is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and ATT 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 ATT Inc 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 ATT i.e., ATT and Agilent Technologies go up and down completely randomly.
Pair Corralation between ATT and Agilent Technologies
Taking into account the 90-day investment horizon ATT is expected to generate 2.45 times less return on investment than Agilent Technologies. But when comparing it to its historical volatility, ATT Inc is 1.08 times less risky than Agilent Technologies. It trades about 0.01 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 13,748 in Agilent Technologies on January 17, 2024 and sell it today you would earn a total of 274.00 from holding Agilent Technologies or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Agilent Technologies
Performance |
| Timeline |
| ATT Inc |
| Agilent Technologies |
ATT and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Agilent Technologies
The main advantage of trading using opposite ATT and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.| ATT vs. Aquagold International | ATT vs. Thrivent High Yield | ATT vs. Morningstar Unconstrained Allocation | ATT vs. Via Renewables |
| Agilent Technologies vs. Intuitive Surgical | Agilent Technologies vs. ResMed Inc | Agilent Technologies vs. Merit Medical Systems | Agilent Technologies vs. ICU Medical |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |