Correlation Between Dyadic International and Agilent Technologies

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

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

Diversification Opportunities for Dyadic International and Agilent Technologies

-0.15

Correlation Coefficient

Dyadic International  Agilent Technologies

Good diversification

The 3 months correlation between Dyadic and Agilent is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dyadic International and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Dyadic International 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 Dyadic International 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 Dyadic International i.e., Dyadic International and Agilent Technologies go up and down completely randomly.

Pair Corralation between Dyadic International and Agilent Technologies

Given the investment horizon of 90 days Dyadic International is expected to under-perform the Agilent Technologies. In addition to that, Dyadic International is 2.39 times more volatile than Agilent Technologies. It trades about -0.09 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.1 per unit of volatility. If you would invest  10,945  in Agilent Technologies on May 22, 2025 and sell it today you would earn a total of  1,066  from holding Agilent Technologies or generate 9.74% return on investment over 90 days.

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

Dyadic International  vs.  Agilent Technologies

Dyadic International

Risk-Adjusted Performance

Weakest

Over the last 90 days Dyadic International 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 fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Agilent Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Dyadic International and Agilent Technologies

The main advantage of trading using opposite Dyadic International and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dyadic International 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 Dyadic International 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.