Correlation Between Agilent Technologies and W R

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Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and W R 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 W R into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and W R Berkley, you can compare the effects of market volatilities on Agilent Technologies and W R 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 W R. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and W R.

Diversification Opportunities for Agilent Technologies and W R

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Agilent and WR1 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and W R Berkley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on W R Berkley 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 W R. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of W R Berkley has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and W R go up and down completely randomly.

Pair Corralation between Agilent Technologies and W R

Assuming the 90 days horizon Agilent Technologies is expected to generate 1.61 times more return on investment than W R. However, Agilent Technologies is 1.61 times more volatile than W R Berkley. It trades about 0.06 of its potential returns per unit of risk. W R Berkley is currently generating about -0.13 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 Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.44%
ValuesDaily Returns

Agilent Technologies  vs.  W R Berkley

 Performance 
       Timeline  
Agilent Technologies 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
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.
W R Berkley 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days W R Berkley has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Agilent Technologies and W R Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Agilent Technologies and W R

The main advantage of trading using opposite Agilent Technologies and W R positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, W R 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 W R will offset losses from the drop in W R's long position.
The idea behind Agilent Technologies and W R Berkley 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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