Correlation Between Ametek and Itron

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

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

Diversification Opportunities for Ametek and Itron

-0.82

Correlation Coefficient

Ametek  Itron

Pay attention - limited upside

The 3 months correlation between Ametek and Itron is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Itron Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itron Inc and Ametek 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 Ametek Inc are associated (or correlated) with Itron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itron Inc has no effect on the direction of Ametek i.e., Ametek and Itron go up and down completely randomly.

Pair Corralation between Ametek and Itron

Considering the 90-day investment horizon Ametek Inc is expected to generate 0.63 times more return on investment than Itron. However, Ametek Inc is 1.59 times less risky than Itron. It trades about 0.03 of its potential returns per unit of risk. Itron Inc is currently generating about -0.07 per unit of risk. If you would invest  18,389  in Ametek Inc on July 3, 2025 and sell it today you would earn a total of  298.00  from holding Ametek Inc or generate 1.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ametek Inc  vs.  Itron Inc

Ametek Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Ametek Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Ametek is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Itron Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Itron Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Ametek and Itron

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

The idea behind Ametek Inc and Itron Inc 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.