Correlation Between Cyclo Therapeutics and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Cyclo Therapeutics 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 Cyclo Therapeutics and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyclo Therapeutics and Agilent Technologies, you can compare the effects of market volatilities on Cyclo Therapeutics 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 Cyclo Therapeutics with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyclo Therapeutics and Agilent Technologies.
Diversification Opportunities for Cyclo Therapeutics and Agilent Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cyclo and Agilent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cyclo Therapeutics and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Cyclo Therapeutics 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 Cyclo Therapeutics 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 Cyclo Therapeutics i.e., Cyclo Therapeutics and Agilent Technologies go up and down completely randomly.
Pair Corralation between Cyclo Therapeutics and Agilent Technologies
Assuming the 90 days horizon Cyclo Therapeutics is expected to generate 4.55 times more return on investment than Agilent Technologies. However, Cyclo Therapeutics is 4.55 times more volatile than Agilent Technologies. It trades about -0.02 of its potential returns per unit of risk. Agilent Technologies is currently generating about -0.15 per unit of risk. If you would invest 24.00 in Cyclo Therapeutics on January 31, 2024 and sell it today you would lose (2.00) from holding Cyclo Therapeutics or give up 8.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Cyclo Therapeutics vs. Agilent Technologies
Performance |
Timeline |
Cyclo Therapeutics |
Agilent Technologies |
Cyclo Therapeutics and Agilent Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cyclo Therapeutics and Agilent Technologies
The main advantage of trading using opposite Cyclo Therapeutics and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyclo Therapeutics 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.Cyclo Therapeutics vs. Neogen | Cyclo Therapeutics vs. Uber Technologies | Cyclo Therapeutics vs. Nuvalent | Cyclo Therapeutics vs. Valneva SE ADR |
Agilent Technologies vs. Tandem Diabetes Care | Agilent Technologies vs. Inspire Medical Systems | Agilent Technologies vs. Shockwave Medical | Agilent Technologies vs. Penumbra |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |