Correlation Between SEEK and Agilent Technologies

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

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

Diversification Opportunities for SEEK and Agilent Technologies

0.01

Correlation Coefficient

SEEK  Agilent Technologies

Significant diversification

The 3 months correlation between SEEK and Agilent is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SEEK Limited and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and SEEK 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 SEEK Limited 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 SEEK i.e., SEEK and Agilent Technologies go up and down completely randomly.

Pair Corralation between SEEK and Agilent Technologies

Assuming the 90 days horizon SEEK Limited is expected to generate 0.85 times more return on investment than Agilent Technologies. However, SEEK Limited is 1.18 times less risky than Agilent Technologies. It trades about 0.06 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.04 per unit of risk. If you would invest  1,280  in SEEK Limited on May 14, 2025 and sell it today you would earn a total of  70.00  from holding SEEK Limited or generate 5.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

SEEK Limited  vs.  Agilent Technologies

SEEK Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SEEK Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SEEK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Agilent Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Agilent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Agilent Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SEEK and Agilent Technologies

The main advantage of trading using opposite SEEK and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEEK 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 SEEK Limited 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.