Correlation Between Agilent Technologies and IQVIA Holdings
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies and IQVIA Holdings 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 IQVIA Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and IQVIA Holdings, you can compare the effects of market volatilities on Agilent Technologies and IQVIA Holdings 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 IQVIA Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and IQVIA Holdings.
Diversification Opportunities for Agilent Technologies and IQVIA Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agilent and IQVIA is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies and IQVIA Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQVIA Holdings 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 IQVIA Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQVIA Holdings has no effect on the direction of Agilent Technologies i.e., Agilent Technologies and IQVIA Holdings go up and down completely randomly.
Pair Corralation between Agilent Technologies and IQVIA Holdings
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 2.46 times less return on investment than IQVIA Holdings. But when comparing it to its historical volatility, Agilent Technologies is 1.61 times less risky than IQVIA Holdings. It trades about 0.08 of its potential returns per unit of risk. IQVIA Holdings is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 16,202 in IQVIA Holdings on June 9, 2025 and sell it today you would earn a total of 2,566 from holding IQVIA Holdings or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. IQVIA Holdings
Performance |
| Timeline |
| Agilent Technologies |
| IQVIA Holdings |
Agilent Technologies and IQVIA Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and IQVIA Holdings
The main advantage of trading using opposite Agilent Technologies and IQVIA Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies position performs unexpectedly, IQVIA Holdings 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 IQVIA Holdings will offset losses from the drop in IQVIA Holdings' long position.| Agilent Technologies vs. Danaher | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Illumina | Agilent Technologies vs. Thermo Fisher Scientific |
| IQVIA Holdings vs. ICON PLC | IQVIA Holdings vs. Mettler Toledo International | IQVIA Holdings vs. Charles River Laboratories | IQVIA Holdings vs. Laboratory of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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