Correlation Between Agilent Technologies and Exxon Mobil

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

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

Diversification Opportunities for Agilent Technologies and Exxon Mobil

0.22

Correlation Coefficient

Agilent Technologies  Exxon Mobil

Modest diversification

The 3 months correlation between Agilent and Exxon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Exxon Mobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exxon Mobil 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 Exxon Mobil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exxon Mobil has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Exxon Mobil go up and down completely randomly.

Pair Corralation between Agilent Technologies and Exxon Mobil

Assuming the 90 days trading horizon Agilent Technologies is expected to generate 0.87 times more return on investment than Exxon Mobil. However, Agilent Technologies is 1.15 times less risky than Exxon Mobil. It trades about 0.15 of its potential returns per unit of risk. Exxon Mobil is currently generating about -0.01 per unit of risk. If you would invest  29,126  in Agilent Technologies on April 25, 2025 and sell it today you would earn a total of  3,660  from holding Agilent Technologies or generate 12.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Agilent Technologies  vs.  Exxon Mobil

Agilent Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Exxon Mobil

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exxon Mobil has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Exxon Mobil is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Agilent Technologies and Exxon Mobil

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

The idea behind Agilent Technologies and Exxon Mobil 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.