Correlation Between Agilent Technologies and Humana
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Humana 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 Humana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Humana Inc, you can compare the effects of market volatilities on Agilent Technologies and Humana 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 Humana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Humana.
Diversification Opportunities for Agilent Technologies and Humana
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Humana is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Humana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Humana Inc 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 Humana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Humana Inc has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Humana go up and down completely randomly.
Pair Corralation between Agilent Technologies and Humana
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 0.52 times more return on investment than Humana. However, Agilent Technologies is 1.93 times less risky than Humana. It trades about -0.15 of its potential returns per unit of risk. Humana Inc is currently generating about -0.19 per unit of risk. If you would invest 14,556 in Agilent Technologies on January 29, 2024 and sell it today you would lose (782.00) from holding Agilent Technologies or give up 5.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Agilent Technologies vs. Humana Inc
Performance |
Timeline |
Agilent Technologies |
Humana Inc |
Agilent Technologies and Humana Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and Humana
The main advantage of trading using opposite Agilent Technologies and Humana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Humana 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 Humana will offset losses from the drop in Humana's long position.Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. IQVIA Holdings | Agilent Technologies vs. Charles River Laboratories | Agilent Technologies vs. Twist Bioscience Corp |
Humana vs. Elevance Health | Humana vs. Centene Corp | Humana vs. UnitedHealth Group Incorporated | Humana vs. CVS Health Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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