Correlation Between IDEXX Laboratories, and Keysight Technologies,

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

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

Diversification Opportunities for IDEXX Laboratories, and Keysight Technologies,

0.87

Correlation Coefficient

IDEXX Laboratories,  Keysight Technologies,

Very poor diversification

The 3 months correlation between IDEXX and Keysight is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories, and Keysight Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keysight Technologies, 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 Keysight Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keysight Technologies, has no effect on the direction of IDEXX Laboratories, i.e., IDEXX Laboratories, and Keysight Technologies, go up and down completely randomly.

Pair Corralation between IDEXX Laboratories, and Keysight Technologies,

Assuming the 90 days trading horizon IDEXX Laboratories, is expected to generate 12.09 times more return on investment than Keysight Technologies,. However, IDEXX Laboratories, is 12.09 times more volatile than Keysight Technologies,. It trades about 0.21 of its potential returns per unit of risk. Keysight Technologies, is currently generating about 0.12 per unit of risk. If you would invest  47,431  in IDEXX Laboratories, on April 23, 2025 and sell it today you would earn a total of  11,769  from holding IDEXX Laboratories, or generate 24.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

IDEXX Laboratories,  vs.  Keysight Technologies,

IDEXX Laboratories,

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IDEXX Laboratories, are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, IDEXX Laboratories, sustained solid returns over the last few months and may actually be approaching a breakup point.

Keysight Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keysight Technologies, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Keysight Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IDEXX Laboratories, and Keysight Technologies,

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

The idea behind IDEXX Laboratories, and Keysight 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.