Correlation Between IDEXX Laboratories, and Exelon
Can any of the company-specific risk be diversified away by investing in both IDEXX Laboratories, and Exelon 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 IDEXX Laboratories, and Exelon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDEXX Laboratories, and Exelon, you can compare the effects of market volatilities on IDEXX Laboratories, and Exelon 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 IDEXX Laboratories, with a short position of Exelon. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEXX Laboratories, and Exelon.
Diversification Opportunities for IDEXX Laboratories, and Exelon
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IDEXX and Exelon is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories, and Exelon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exelon and IDEXX Laboratories, 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 IDEXX Laboratories, are associated (or correlated) with Exelon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exelon has no effect on the direction of IDEXX Laboratories, i.e., IDEXX Laboratories, and Exelon go up and down completely randomly.
Pair Corralation between IDEXX Laboratories, and Exelon
Assuming the 90 days trading horizon IDEXX Laboratories, is expected to generate 1.23 times more return on investment than Exelon. However, IDEXX Laboratories, is 1.23 times more volatile than Exelon. It trades about 0.22 of its potential returns per unit of risk. Exelon is currently generating about -0.07 per unit of risk. If you would invest 47,431 in IDEXX Laboratories, on April 25, 2025 and sell it today you would earn a total of 12,273 from holding IDEXX Laboratories, or generate 25.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IDEXX Laboratories, vs. Exelon
Performance |
Timeline |
IDEXX Laboratories, |
Exelon |
IDEXX Laboratories, and Exelon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IDEXX Laboratories, and Exelon
The main advantage of trading using opposite IDEXX Laboratories, and Exelon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEXX Laboratories, position performs unexpectedly, Exelon 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 Exelon will offset losses from the drop in Exelon's long position.IDEXX Laboratories, vs. SSC Technologies Holdings, | IDEXX Laboratories, vs. Autohome | IDEXX Laboratories, vs. Keysight Technologies, | IDEXX Laboratories, vs. GX AI TECH |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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