Correlation Between Agilent Technologies and Biogen

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

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

Diversification Opportunities for Agilent Technologies and Biogen

0.52

Correlation Coefficient

Agilent Technologies  Biogen

Very weak diversification

The 3 months correlation between Agilent and Biogen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Biogen go up and down completely randomly.

Pair Corralation between Agilent Technologies and Biogen

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 2.07 times less return on investment than Biogen. But when comparing it to its historical volatility, Agilent Technologies is 1.08 times less risky than Biogen. It trades about 0.03 of its potential returns per unit of risk. Biogen Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  12,037  in Biogen Inc on May 14, 2025 and sell it today you would earn a total of  763.00  from holding Biogen Inc or generate 6.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Agilent Technologies  vs.  Biogen Inc

Agilent Technologies

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 2 (%) 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 current stock price disturbance, may contribute to short-term losses for the investors.

Biogen Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Biogen Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Biogen may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Agilent Technologies and Biogen

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

The idea behind Agilent Technologies and Biogen Inc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.