Correlation Between Agilent Technologies and Strategic Education

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

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

Diversification Opportunities for Agilent Technologies and Strategic Education

0.1

Correlation Coefficient

Agilent Technologies  Strategic Education

Average diversification

The 3 months correlation between Agilent and Strategic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and Strategic Education go up and down completely randomly.

Pair Corralation between Agilent Technologies and Strategic Education

Assuming the 90 days horizon Agilent Technologies is expected to generate 1.03 times more return on investment than Strategic Education. However, Agilent Technologies is 1.03 times more volatile than Strategic Education. It trades about 0.06 of its potential returns per unit of risk. Strategic Education is currently generating about -0.05 per unit of risk. If you would invest  9,181  in Agilent Technologies on April 24, 2025 and sell it today you would earn a total of  619.00  from holding Agilent Technologies or generate 6.74% 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.  Strategic Education

Agilent Technologies

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Strategic Education

Risk-Adjusted Performance

Very Weak

Over the last 90 days Strategic Education has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Strategic Education is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Agilent Technologies and Strategic Education

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

The idea behind Agilent Technologies and Strategic Education 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.