Correlation Between Agilent Technologies and Immunocore Holdings

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

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

Diversification Opportunities for Agilent Technologies and Immunocore Holdings

0.47

Correlation Coefficient

Agilent Technologies  Immunocore Holdings

Very weak diversification

The 3 months correlation between Agilent and Immunocore is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings 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 Immunocore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunocore Holdings has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Immunocore Holdings go up and down completely randomly.

Pair Corralation between Agilent Technologies and Immunocore Holdings

Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Immunocore Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 1.18 times less risky than Immunocore Holdings. The stock trades about -0.2 of its potential returns per unit of risk. The Immunocore Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  3,117  in Immunocore Holdings on February 3, 2025 and sell it today you would lose (71.00) from holding Immunocore Holdings or give up 2.28% of portfolio value over 90 days.

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

Agilent Technologies  vs.  Immunocore Holdings

Agilent Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Immunocore Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Immunocore Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Immunocore Holdings is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Agilent Technologies and Immunocore Holdings

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

The idea behind Agilent Technologies and Immunocore Holdings 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.