Correlation Between Alpha Tau and Agilent Technologies

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

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

Diversification Opportunities for Alpha Tau and Agilent Technologies

0.4

Correlation Coefficient

Alpha Tau  Agilent Technologies

Very weak diversification

The 3 months correlation between Alpha and Agilent is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alpha Tau Medical and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Alpha Tau 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 Alpha Tau Medical are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Alpha Tau i.e., Alpha Tau and Agilent Technologies go up and down completely randomly.

Pair Corralation between Alpha Tau and Agilent Technologies

Assuming the 90 days horizon Alpha Tau Medical is expected to generate 3.35 times more return on investment than Agilent Technologies. However, Alpha Tau is 3.35 times more volatile than Agilent Technologies. It trades about 0.09 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.06 per unit of risk. If you would invest  23.00  in Alpha Tau Medical on May 19, 2025 and sell it today you would earn a total of  4.00  from holding Alpha Tau Medical or generate 17.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	73.02%
Values	Daily Returns

Alpha Tau Medical  vs.  Agilent Technologies

Alpha Tau Medical

Risk-Adjusted Performance

Mild

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

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.

Pair Trading with Alpha Tau and Agilent Technologies

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

The idea behind Alpha Tau Medical and Agilent Technologies 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.