Correlation Between Agilent Technologies and Apple

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

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

Diversification Opportunities for Agilent Technologies and Apple

0.02

Correlation Coefficient

Agilent Technologies  Apple

Significant diversification

The 3 months correlation between Agilent and Apple is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Apple go up and down completely randomly.

Pair Corralation between Agilent Technologies and Apple

Assuming the 90 days horizon Agilent Technologies is expected to under-perform the Apple. But the stock apears to be less risky and, when comparing its historical volatility, Agilent Technologies is 1.02 times less risky than Apple. The stock trades about 0.0 of its potential returns per unit of risk. The Apple Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  17,643  in Apple Inc on April 20, 2025 and sell it today you would earn a total of  429.00  from holding Apple Inc or generate 2.43% return on investment over 90 days.

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

Agilent Technologies  vs.  Apple Inc

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 fragile basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Apple Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Apple is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Agilent Technologies and Apple

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

The idea behind Agilent Technologies and Apple Inc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.