Correlation Between AGILENT TECH and Keyence

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

By analyzing existing cross correlation between AGILENT TECH and Keyence, you can compare the effects of market volatilities on AGILENT TECH and Keyence 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 TECH with a short position of Keyence. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGILENT TECH and Keyence.

Diversification Opportunities for AGILENT TECH and Keyence

-0.43

Correlation Coefficient

AGILENT TECH  Keyence

Very good diversification

The 3 months correlation between AGILENT and Keyence is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AGILENT TECH and Keyence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keyence and AGILENT TECH 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 TECH are associated (or correlated) with Keyence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keyence has no effect on the direction of AGILENT TECH i.e., AGILENT TECH and Keyence go up and down completely randomly.

Pair Corralation between AGILENT TECH and Keyence

Assuming the 90 days trading horizon AGILENT TECH is expected to generate 1.2 times more return on investment than Keyence. However, AGILENT TECH is 1.2 times more volatile than Keyence. It trades about 0.06 of its potential returns per unit of risk. Keyence is currently generating about -0.12 per unit of risk. If you would invest  9,340  in AGILENT TECH on April 24, 2025 and sell it today you would earn a total of  563.00  from holding AGILENT TECH or generate 6.03% return on investment over 90 days.

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

AGILENT TECH  vs.  Keyence

AGILENT TECH

Risk-Adjusted Performance

Modest

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

Keyence

Risk-Adjusted Performance

Very Weak

Over the last 90 days Keyence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with AGILENT TECH and Keyence

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

The idea behind AGILENT TECH and Keyence 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.