Correlation Between Agilent Technologies and ACCSYS TECHPLC

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

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

Diversification Opportunities for Agilent Technologies and ACCSYS TECHPLC

0.62

Correlation Coefficient

Agilent Technologies  ACCSYS TECHPLC

Poor diversification

The 3 months correlation between Agilent and ACCSYS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and ACCSYS TECHPLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCSYS TECHPLC EO 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 ACCSYS TECHPLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCSYS TECHPLC EO has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and ACCSYS TECHPLC go up and down completely randomly.

Pair Corralation between Agilent Technologies and ACCSYS TECHPLC

Assuming the 90 days horizon Agilent Technologies is expected to generate 10.4 times less return on investment than ACCSYS TECHPLC. But when comparing it to its historical volatility, Agilent Technologies is 1.75 times less risky than ACCSYS TECHPLC. It trades about 0.02 of its potential returns per unit of risk. ACCSYS TECHPLC EO is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  51.00  in ACCSYS TECHPLC EO on April 25, 2025 and sell it today you would earn a total of  15.00  from holding ACCSYS TECHPLC EO or generate 29.41% return on investment over 90 days.

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

Agilent Technologies  vs.  ACCSYS TECHPLC EO

Agilent Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Agilent Technologies is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ACCSYS TECHPLC EO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACCSYS TECHPLC EO are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ACCSYS TECHPLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Agilent Technologies and ACCSYS TECHPLC

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

The idea behind Agilent Technologies and ACCSYS TECHPLC EO 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 Positions Ratings module to 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.