Correlation Between Agilent Technologies and Curtiss Wright
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Curtiss Wright 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 Curtiss Wright into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Curtiss Wright, you can compare the effects of market volatilities on Agilent Technologies and Curtiss Wright 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 Curtiss Wright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Curtiss Wright.
Diversification Opportunities for Agilent Technologies and Curtiss Wright
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agilent and Curtiss is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Curtiss-Wright in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curtiss-Wright 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 Curtiss Wright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curtiss-Wright has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Curtiss Wright go up and down completely randomly.
Pair Corralation between Agilent Technologies and Curtiss Wright
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.04 times less return on investment than Curtiss Wright. In addition to that, Agilent Technologies is 1.66 times more volatile than Curtiss Wright. It trades about 0.08 of its total potential returns per unit of risk. Curtiss Wright is currently generating about 0.15 per unit of volatility. If you would invest 20,742 in Curtiss Wright on December 29, 2023 and sell it today you would earn a total of 4,852 from holding Curtiss Wright or generate 23.39% 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. Curtiss-Wright
Performance |
Timeline |
Agilent Technologies |
Curtiss-Wright |
Agilent Technologies and Curtiss Wright Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Agilent Technologies and Curtiss Wright
The main advantage of trading using opposite Agilent Technologies and Curtiss Wright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Curtiss Wright 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 Curtiss Wright will offset losses from the drop in Curtiss Wright's long position.Agilent Technologies vs. Mustang Bio | Agilent Technologies vs. Moleculin Biotech | Agilent Technologies vs. Clever Leaves Holdings | Agilent Technologies vs. Seres Therapeutics |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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