Correlation Between Agilent Technologies and ISpecimen

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

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

Diversification Opportunities for Agilent Technologies and ISpecimen

-0.26

Correlation Coefficient

Agilent Technologies  ISpecimen

Very good diversification

The 3 months correlation between Agilent and ISpecimen is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and iSpecimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSpecimen 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 ISpecimen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSpecimen has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ISpecimen go up and down completely randomly.

Pair Corralation between Agilent Technologies and ISpecimen

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 65.64 times less return on investment than ISpecimen. But when comparing it to its historical volatility, Agilent Technologies is 3.94 times less risky than ISpecimen. It trades about 0.0 of its potential returns per unit of risk. iSpecimen is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  117.00  in iSpecimen on May 12, 2025 and sell it today you would earn a total of  11.00  from holding iSpecimen or generate 9.4% return on investment over 90 days.

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

Agilent Technologies  vs.  iSpecimen

Agilent Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

iSpecimen

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilent Technologies and ISpecimen

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

The idea behind Agilent Technologies and iSpecimen 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.