Correlation Between Agilent Technologies and QuantumSi

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

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

Diversification Opportunities for Agilent Technologies and QuantumSi

0.74

Correlation Coefficient

Agilent Technologies  QuantumSi

Poor diversification

The 3 months correlation between Agilent and QuantumSi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and QuantumSi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantumSi 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 QuantumSi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantumSi has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and QuantumSi go up and down completely randomly.

Pair Corralation between Agilent Technologies and QuantumSi

Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 5.44 times less return on investment than QuantumSi. But when comparing it to its historical volatility, Agilent Technologies is 3.27 times less risky than QuantumSi. It trades about 0.05 of its potential returns per unit of risk. QuantumSi is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  120.00  in QuantumSi on May 4, 2025 and sell it today you would earn a total of  26.00  from holding QuantumSi or generate 21.67% 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.  QuantumSi

Agilent Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 3 (%) 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.

QuantumSi

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in QuantumSi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, QuantumSi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilent Technologies and QuantumSi

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

The idea behind Agilent Technologies and QuantumSi 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.