Correlation Between Agilent Technologies and Fulgent Genetics
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and Fulgent Genetics 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 Fulgent Genetics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Fulgent Genetics, you can compare the effects of market volatilities on Agilent Technologies and Fulgent Genetics 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 Fulgent Genetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Fulgent Genetics.
Diversification Opportunities for Agilent Technologies and Fulgent Genetics
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Agilent and Fulgent is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Fulgent Genetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulgent Genetics 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 Fulgent Genetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulgent Genetics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Fulgent Genetics go up and down completely randomly.
Pair Corralation between Agilent Technologies and Fulgent Genetics
Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Fulgent Genetics. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 1.04 times less risky than Fulgent Genetics. The stock trades about -0.34 of its potential returns per unit of risk. The Fulgent Genetics is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 2,198 in Fulgent Genetics on January 20, 2024 and sell it today you would lose (187.00) from holding Fulgent Genetics or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Agilent Technologies vs. Fulgent Genetics
Performance |
| Timeline |
| Agilent Technologies |
| Fulgent Genetics |
Agilent Technologies and Fulgent Genetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Fulgent Genetics
The main advantage of trading using opposite Agilent Technologies and Fulgent Genetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Fulgent Genetics 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 Fulgent Genetics will offset losses from the drop in Fulgent Genetics' long position.| Agilent Technologies vs. Oric PharmaceuticalsInc | Agilent Technologies vs. Anebulo Pharmaceuticals | Agilent Technologies vs. Cullinan Oncology LLC | Agilent Technologies vs. C4 TherapeuticsInc |
| Fulgent Genetics vs. Certara | Fulgent Genetics vs. HealthStream | Fulgent Genetics vs. Evolent Health | Fulgent Genetics vs. Streamline Health Solutions |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |