Correlation Between IDEXX Laboratories and Agilent Technologies
Can any of the company-specific risk be diversified away by investing in both IDEXX Laboratories 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 IDEXX Laboratories and Agilent 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 Agilent Technologies, you can compare the effects of market volatilities on IDEXX Laboratories 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 IDEXX Laboratories with a short position of Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEXX Laboratories and Agilent Technologies.
Diversification Opportunities for IDEXX Laboratories and Agilent Technologies
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDEXX and Agilent is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent 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 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 IDEXX Laboratories i.e., IDEXX Laboratories and Agilent Technologies go up and down completely randomly.
Pair Corralation between IDEXX Laboratories and Agilent Technologies
Given the investment horizon of 90 days IDEXX Laboratories is expected to generate 2.19 times more return on investment than Agilent Technologies. However, IDEXX Laboratories is 2.19 times more volatile than Agilent Technologies. It trades about 0.11 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.06 per unit of risk. If you would invest 51,336 in IDEXX Laboratories on May 30, 2025 and sell it today you would earn a total of 12,750 from holding IDEXX Laboratories or generate 24.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDEXX Laboratories vs. Agilent Technologies
Performance |
| Timeline |
| IDEXX Laboratories |
| Agilent Technologies |
IDEXX Laboratories and Agilent Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDEXX Laboratories and Agilent Technologies
The main advantage of trading using opposite IDEXX Laboratories and Agilent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEXX Laboratories 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.| IDEXX Laboratories vs. Waters | IDEXX Laboratories vs. IQVIA Holdings | IDEXX Laboratories vs. Charles River Laboratories | IDEXX Laboratories vs. Revvity |
| Agilent Technologies vs. Danaher | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Illumina | Agilent Technologies vs. Thermo Fisher Scientific |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |