Correlation Between IDEXX Laboratories and China New
Can any of the company-specific risk be diversified away by investing in both IDEXX Laboratories and China New 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 China New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IDEXX Laboratories and China New Energy, you can compare the effects of market volatilities on IDEXX Laboratories and China New 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 China New. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEXX Laboratories and China New.
Diversification Opportunities for IDEXX Laboratories and China New
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IDEXX and China is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories and China New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China New Energy 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 China New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China New Energy has no effect on the direction of IDEXX Laboratories i.e., IDEXX Laboratories and China New go up and down completely randomly.
Pair Corralation between IDEXX Laboratories and China New
If you would invest 42,752 in IDEXX Laboratories on November 27, 2024 and sell it today you would earn a total of 3,614 from holding IDEXX Laboratories or generate 8.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDEXX Laboratories vs. China New Energy
Performance |
| Timeline |
| IDEXX Laboratories |
| China New Energy |
IDEXX Laboratories and China New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDEXX Laboratories and China New
The main advantage of trading using opposite IDEXX Laboratories and China New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEXX Laboratories position performs unexpectedly, China New 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 China New will offset losses from the drop in China New's long position.| IDEXX Laboratories vs. Waters | IDEXX Laboratories vs. IQVIA Holdings | IDEXX Laboratories vs. Charles River Laboratories | IDEXX Laboratories vs. Revvity |
| China New vs. Sonic Healthcare Ltd | China New vs. Lonza Group | China New vs. Charles River Laboratories | China New vs. Qiagen NV |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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