Correlation Between Mettler Toledo and ANSYS

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

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

Diversification Opportunities for Mettler Toledo and ANSYS

0.84

Correlation Coefficient

Mettler Toledo  ANSYS

Very poor diversification

The 3 months correlation between Mettler and ANSYS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mettler Toledo International and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and Mettler Toledo 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 Mettler Toledo International are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Mettler Toledo i.e., Mettler Toledo and ANSYS go up and down completely randomly.

Pair Corralation between Mettler Toledo and ANSYS

Considering the 90-day investment horizon Mettler Toledo is expected to generate 1.71 times less return on investment than ANSYS. But when comparing it to its historical volatility, Mettler Toledo International is 1.03 times less risky than ANSYS. It trades about 0.09 of its potential returns per unit of risk. ANSYS Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  36,309  in ANSYS Inc on May 6, 2025 and sell it today you would earn a total of  1,121  from holding ANSYS Inc or generate 3.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	47.62%
Values	Daily Returns

Mettler Toledo International  vs.  ANSYS Inc

Mettler Toledo Inter

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mettler Toledo International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Mettler Toledo exhibited solid returns over the last few months and may actually be approaching a breakup point.

ANSYS Inc

Risk-Adjusted Performance

Good

Over the last 90 days ANSYS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, ANSYS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mettler Toledo and ANSYS

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

The idea behind Mettler Toledo International and ANSYS 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.