Correlation Between Agilent Technologies and EXACT Sciences
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and EXACT Sciences 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 EXACT Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and EXACT Sciences, you can compare the effects of market volatilities on Agilent Technologies and EXACT Sciences 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 EXACT Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and EXACT Sciences.
Diversification Opportunities for Agilent Technologies and EXACT Sciences
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Agilent and EXACT is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and EXACT Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXACT Sciences 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 EXACT Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXACT Sciences has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and EXACT Sciences go up and down completely randomly.
Pair Corralation between Agilent Technologies and EXACT Sciences
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the EXACT Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 1.76 times less risky than EXACT Sciences. The stock trades about -0.12 of its potential returns per unit of risk. The EXACT Sciences is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,524 in EXACT Sciences on January 26, 2024 and sell it today you would lose (200.00) from holding EXACT Sciences or give up 3.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. EXACT Sciences
Performance |
| Timeline |
| Agilent Technologies |
| EXACT Sciences |
Agilent Technologies and EXACT Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and EXACT Sciences
The main advantage of trading using opposite Agilent Technologies and EXACT Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, EXACT Sciences 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 EXACT Sciences will offset losses from the drop in EXACT Sciences' long position.| Agilent Technologies vs. Fonar | Agilent Technologies vs. Burning Rock BiotechLtd | Agilent Technologies vs. Sera Prognostics | Agilent Technologies vs. Psychemedics |
| EXACT Sciences vs. Laboratory of | EXACT Sciences vs. Waters | EXACT Sciences vs. IDEXX Laboratories | EXACT Sciences vs. Revvity |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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