Correlation Between Grupo Aval and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both Grupo Aval 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 Grupo Aval and Agilent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Aval and Agilent Technologies, you can compare the effects of market volatilities on Grupo Aval 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 Grupo Aval with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aval and Agilent Technologies.
Diversification Opportunities for Grupo Aval and Agilent Technologies
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Agilent is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aval and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent Technologies and Grupo Aval 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 Grupo Aval 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 Grupo Aval i.e., Grupo Aval and Agilent Technologies go up and down completely randomly.
Pair Corralation between Grupo Aval and Agilent Technologies
Given the investment horizon of 90 days Grupo Aval is expected to generate 1.25 times more return on investment than Agilent Technologies. However, Grupo Aval is 1.25 times more volatile than Agilent Technologies. It trades about 0.17 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.02 per unit of risk. If you would invest 344.00 in Grupo Aval on October 8, 2025 and sell it today you would earn a total of 65.00 from holding Grupo Aval or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aval vs. Agilent Technologies
Performance |
| Timeline |
| Grupo Aval |
| Agilent Technologies |
Grupo Aval and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aval and Agilent Technologies
The main advantage of trading using opposite Grupo Aval and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aval 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.| Grupo Aval vs. United Bankshares | Grupo Aval vs. Ameris Bancorp | Grupo Aval vs. Hancock Whitney Corp | Grupo Aval vs. Bank Ozk |
| Agilent Technologies vs. IQVIA Holdings | Agilent Technologies vs. Mettler Toledo International | Agilent Technologies vs. Alcon AG | Agilent Technologies vs. ResMed Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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