Correlation Between FORTRESS BIOTECHPRFA and Agilent Technologies

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

By analyzing existing cross correlation between FORTRESS BIOTECHPRFA 25 and Agilent Technologies, you can compare the effects of market volatilities on FORTRESS BIOTECHPRFA and Agilent Technologies 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 FORTRESS BIOTECHPRFA with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORTRESS BIOTECHPRFA and Agilent Technologies.

Diversification Opportunities for FORTRESS BIOTECHPRFA and Agilent Technologies

0.64

Correlation Coefficient

FORTRESS BIOTECHPRFA  Agilent Technologies

Poor diversification

The 3 months correlation between FORTRESS and Agilent is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FORTRESS BIOTECHPRFA 25 and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and FORTRESS BIOTECHPRFA 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 FORTRESS BIOTECHPRFA 25 are associated (or correlated) with Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of FORTRESS BIOTECHPRFA i.e., FORTRESS BIOTECHPRFA and Agilent Technologies go up and down completely randomly.

Pair Corralation between FORTRESS BIOTECHPRFA and Agilent Technologies

Assuming the 90 days trading horizon FORTRESS BIOTECHPRFA 25 is expected to generate 2.52 times more return on investment than Agilent Technologies. However, FORTRESS BIOTECHPRFA is 2.52 times more volatile than Agilent Technologies. It trades about 0.1 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.09 per unit of risk. If you would invest  525.00  in FORTRESS BIOTECHPRFA 25 on April 22, 2025 and sell it today you would earn a total of  135.00  from holding FORTRESS BIOTECHPRFA 25 or generate 25.71% return on investment over 90 days.

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

FORTRESS BIOTECHPRFA 25  vs.  Agilent Technologies

FORTRESS BIOTECHPRFA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FORTRESS BIOTECHPRFA 25 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental drivers, FORTRESS BIOTECHPRFA reported solid returns over the last few months and may actually be approaching a breakup point.

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

Pair Trading with FORTRESS BIOTECHPRFA and Agilent Technologies

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

The idea behind FORTRESS BIOTECHPRFA 25 and Agilent Technologies 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.