Correlation Between IQVIA Holdings and Waters

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

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

Diversification Opportunities for IQVIA Holdings and Waters

-0.66

Correlation Coefficient

IQVIA Holdings  Waters

Excellent diversification

The 3 months correlation between IQVIA and Waters is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding IQVIA Holdings and Waters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waters and IQVIA Holdings 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 IQVIA Holdings are associated (or correlated) with Waters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waters has no effect on the direction of IQVIA Holdings i.e., IQVIA Holdings and Waters go up and down completely randomly.

Pair Corralation between IQVIA Holdings and Waters

Considering the 90-day investment horizon IQVIA Holdings is expected to generate 1.19 times more return on investment than Waters. However, IQVIA Holdings is 1.19 times more volatile than Waters. It trades about 0.11 of its potential returns per unit of risk. Waters is currently generating about -0.1 per unit of risk. If you would invest  15,330  in IQVIA Holdings on May 7, 2025 and sell it today you would earn a total of  2,945  from holding IQVIA Holdings or generate 19.21% return on investment over 90 days.

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

IQVIA Holdings  vs.  Waters

IQVIA Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in IQVIA Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, IQVIA Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Waters

Risk-Adjusted Performance

Weakest

Over the last 90 days Waters has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with IQVIA Holdings and Waters

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

The idea behind IQVIA Holdings and Waters 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.