Correlation Between Agilent Technologies and Phio Pharmaceuticals

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

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

Diversification Opportunities for Agilent Technologies and Phio Pharmaceuticals

0.62

Correlation Coefficient

Agilent Technologies  Phio Pharmaceuticals

Poor diversification

The 3 months correlation between Agilent and Phio is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Phio Pharmaceuticals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phio Pharmaceuticals Corp 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 Phio Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phio Pharmaceuticals Corp has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Phio Pharmaceuticals go up and down completely randomly.

Pair Corralation between Agilent Technologies and Phio Pharmaceuticals

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 4.33 times less return on investment than Phio Pharmaceuticals. But when comparing it to its historical volatility, Agilent Technologies is 3.13 times less risky than Phio Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Phio Pharmaceuticals Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  183.00  in Phio Pharmaceuticals Corp on May 19, 2025 and sell it today you would earn a total of  35.00  from holding Phio Pharmaceuticals Corp or generate 19.13% 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.  Phio Pharmaceuticals Corp

Agilent Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 4 (%) 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Phio Pharmaceuticals Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Phio Pharmaceuticals Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Phio Pharmaceuticals displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilent Technologies and Phio Pharmaceuticals

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

The idea behind Agilent Technologies and Phio Pharmaceuticals Corp 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.