Correlation Between Agilent Technologies and BioLineRx

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

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

Diversification Opportunities for Agilent Technologies and BioLineRx

0.72

Correlation Coefficient

Agilent Technologies  BioLineRx

Poor diversification

The 3 months correlation between Agilent and BioLineRx is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and BioLineRx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLineRx 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 BioLineRx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLineRx has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and BioLineRx go up and down completely randomly.

Pair Corralation between Agilent Technologies and BioLineRx

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 3.36 times less return on investment than BioLineRx. But when comparing it to its historical volatility, Agilent Technologies is 3.6 times less risky than BioLineRx. It trades about 0.1 of its potential returns per unit of risk. BioLineRx is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  319.00  in BioLineRx on April 28, 2025 and sell it today you would earn a total of  106.00  from holding BioLineRx or generate 33.23% return on investment over 90 days.

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

Agilent Technologies  vs.  BioLineRx

Agilent Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Agilent Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

BioLineRx

Risk-Adjusted Performance

OK

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

Pair Trading with Agilent Technologies and BioLineRx

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

The idea behind Agilent Technologies and BioLineRx 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.