Correlation Between Goosehead Insurance and Agilent Technologies

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

By analyzing existing cross correlation between Goosehead Insurance and Agilent Technologies, you can compare the effects of market volatilities on Goosehead Insurance 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 Goosehead Insurance with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goosehead Insurance and Agilent Technologies.

Diversification Opportunities for Goosehead Insurance and Agilent Technologies

-0.11

Correlation Coefficient

Goosehead Insurance  Agilent Technologies

Good diversification

The 3 months correlation between Goosehead and Agilent is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance i.e., Goosehead Insurance and Agilent Technologies go up and down completely randomly.

Pair Corralation between Goosehead Insurance and Agilent Technologies

Assuming the 90 days trading horizon Goosehead Insurance is expected to generate 2.99 times less return on investment than Agilent Technologies. In addition to that, Goosehead Insurance is 1.25 times more volatile than Agilent Technologies. It trades about 0.02 of its total potential returns per unit of risk. Agilent Technologies is currently generating about 0.09 per unit of volatility. If you would invest  8,882  in Agilent Technologies on April 22, 2025 and sell it today you would earn a total of  906.00  from holding Agilent Technologies or generate 10.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Goosehead Insurance  vs.  Agilent Technologies

Goosehead Insurance

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goosehead Insurance are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Goosehead Insurance is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Agilent Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Goosehead Insurance and Agilent Technologies

The main advantage of trading using opposite Goosehead Insurance and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance 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.

The idea behind Goosehead Insurance and Agilent Technologies 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.