Correlation Between IDEXX Laboratories, and Multilaser Industrial

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

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

Diversification Opportunities for IDEXX Laboratories, and Multilaser Industrial

-0.32

Correlation Coefficient

IDEXX Laboratories,  Multilaser Industrial

Very good diversification

The 3 months correlation between IDEXX and Multilaser is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding IDEXX Laboratories, and Multilaser Industrial SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multilaser Industrial 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 Multilaser Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multilaser Industrial has no effect on the direction of IDEXX Laboratories, i.e., IDEXX Laboratories, and Multilaser Industrial go up and down completely randomly.

Pair Corralation between IDEXX Laboratories, and Multilaser Industrial

Assuming the 90 days trading horizon IDEXX Laboratories, is expected to generate 1.47 times more return on investment than Multilaser Industrial. However, IDEXX Laboratories, is 1.47 times more volatile than Multilaser Industrial SA. It trades about 0.11 of its potential returns per unit of risk. Multilaser Industrial SA is currently generating about -0.07 per unit of risk. If you would invest  56,920  in IDEXX Laboratories, on May 14, 2025 and sell it today you would earn a total of  13,654  from holding IDEXX Laboratories, or generate 23.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

IDEXX Laboratories,  vs.  Multilaser Industrial SA

IDEXX Laboratories,

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in IDEXX Laboratories, are ranked lower than 8 (%) 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.

Multilaser Industrial

Risk-Adjusted Performance

Weakest

Over the last 90 days Multilaser Industrial 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 Multilaser Industrial

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

The idea behind IDEXX Laboratories, and Multilaser Industrial 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.