Correlation Between IDEXX Laboratories, and Lupatech

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

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

Diversification Opportunities for IDEXX Laboratories, and Lupatech

-0.77

Correlation Coefficient

IDEXX Laboratories,  Lupatech

Pay attention - limited upside

The 3 months correlation between IDEXX and Lupatech is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories, and Lupatech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lupatech SA 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 Lupatech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lupatech SA has no effect on the direction of IDEXX Laboratories, i.e., IDEXX Laboratories, and Lupatech go up and down completely randomly.

Pair Corralation between IDEXX Laboratories, and Lupatech

Assuming the 90 days trading horizon IDEXX Laboratories, is expected to generate 0.83 times more return on investment than Lupatech. However, IDEXX Laboratories, is 1.21 times less risky than Lupatech. It trades about 0.15 of its potential returns per unit of risk. Lupatech SA is currently generating about -0.1 per unit of risk. If you would invest  57,429  in IDEXX Laboratories, on April 24, 2025 and sell it today you would earn a total of  1,771  from holding IDEXX Laboratories, or generate 3.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

IDEXX Laboratories,  vs.  Lupatech SA

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.

Lupatech SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lupatech SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with IDEXX Laboratories, and Lupatech

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

The idea behind IDEXX Laboratories, and Lupatech SA 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.