Correlation Between Bio Rad and Icon Information

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

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

Diversification Opportunities for Bio Rad and Icon Information

0.57

Correlation Coefficient

Bio Rad  Icon Information

Very weak diversification

The 3 months correlation between Bio and Icon is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec and Bio Rad 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 Bio Rad Laboratories are associated (or correlated) with Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Bio Rad i.e., Bio Rad and Icon Information go up and down completely randomly.

Pair Corralation between Bio Rad and Icon Information

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 3.51 times more return on investment than Icon Information. However, Bio Rad is 3.51 times more volatile than Icon Information Technology. It trades about 0.05 of its potential returns per unit of risk. Icon Information Technology is currently generating about 0.16 per unit of risk. If you would invest  25,156  in Bio Rad Laboratories on July 3, 2025 and sell it today you would earn a total of  1,855  from holding Bio Rad Laboratories or generate 7.37% return on investment over 90 days.

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

Bio Rad Laboratories  vs.  Icon Information Technology

Bio Rad Laboratories

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Icon Information Tec

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Icon Information Technology are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Icon Information may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Bio Rad and Icon Information

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

The idea behind Bio Rad Laboratories and Icon Information Technology 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.