Correlation Between Galecto and Agilent Technologies

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

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

Diversification Opportunities for Galecto and Agilent Technologies

0.46

Correlation Coefficient

Galecto  Agilent Technologies

Very weak diversification

The 3 months correlation between Galecto and Agilent is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Galecto and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Galecto 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 Galecto 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 Galecto i.e., Galecto and Agilent Technologies go up and down completely randomly.

Pair Corralation between Galecto and Agilent Technologies

Given the investment horizon of 90 days Galecto is expected to generate 10.17 times more return on investment than Agilent Technologies. However, Galecto is 10.17 times more volatile than Agilent Technologies. It trades about 0.03 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.02 per unit of risk. If you would invest  1,413  in Galecto on July 13, 2025 and sell it today you would lose (147.00) from holding Galecto or give up 10.4% of portfolio value over 90 days.

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

Galecto  vs.  Agilent Technologies

Galecto

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Galecto are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Galecto displayed solid returns over the last few months and may actually be approaching a breakup point.

Agilent Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Agilent Technologies sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Galecto and Agilent Technologies

The main advantage of trading using opposite Galecto and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galecto 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 Galecto 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.