Correlation Between Agilent Technologies and Mineralys Therapeutics

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

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

Diversification Opportunities for Agilent Technologies and Mineralys Therapeutics

-0.03

Correlation Coefficient

Agilent Technologies  Mineralys Therapeutics

Good diversification

The 3 months correlation between Agilent and Mineralys is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Mineralys Therapeutics Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mineralys Therapeutics 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 Mineralys Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mineralys Therapeutics has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Mineralys Therapeutics go up and down completely randomly.

Pair Corralation between Agilent Technologies and Mineralys Therapeutics

Taking into account the 90-day investment horizon Agilent Technologies is expected to under-perform the Mineralys Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 2.29 times less risky than Mineralys Therapeutics. The stock trades about -0.12 of its potential returns per unit of risk. The Mineralys Therapeutics Common is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,258  in Mineralys Therapeutics Common on February 2, 2024 and sell it today you would earn a total of  22.00  from holding Mineralys Therapeutics Common or generate 1.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Agilent Technologies  vs.  Mineralys Therapeutics Common

Agilent Technologies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Agilent Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Mineralys Therapeutics

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mineralys Therapeutics Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Mineralys Therapeutics may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Agilent Technologies and Mineralys Therapeutics

The main advantage of trading using opposite Agilent Technologies and Mineralys Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, Mineralys Therapeutics 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 Mineralys Therapeutics will offset losses from the drop in Mineralys Therapeutics' long position.

The idea behind Agilent Technologies and Mineralys Therapeutics Common 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.