Correlation Between Roper Technologies and Schweiter Technologies
Can any of the company-specific risk be diversified away by investing in both Roper Technologies and Schweiter Technologies 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 Roper Technologies and Schweiter Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roper Technologies and Schweiter Technologies AG, you can compare the effects of market volatilities on Roper Technologies and Schweiter Technologies 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 Roper Technologies with a short position of Schweiter Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roper Technologies and Schweiter Technologies.
Diversification Opportunities for Roper Technologies and Schweiter Technologies
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Roper and Schweiter is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies and Schweiter Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweiter Technologies and Roper Technologies 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 Roper Technologies are associated (or correlated) with Schweiter Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweiter Technologies has no effect on the direction of Roper Technologies i.e., Roper Technologies and Schweiter Technologies go up and down completely randomly.
Pair Corralation between Roper Technologies and Schweiter Technologies
Assuming the 90 days trading horizon Roper Technologies is expected to generate 3.26 times more return on investment than Schweiter Technologies. However, Roper Technologies is 3.26 times more volatile than Schweiter Technologies AG. It trades about 0.03 of its potential returns per unit of risk. Schweiter Technologies AG is currently generating about -0.03 per unit of risk. If you would invest 53,328 in Roper Technologies on January 24, 2025 and sell it today you would earn a total of 2,715 from holding Roper Technologies or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Roper Technologies vs. Schweiter Technologies AG
Performance |
| Timeline |
| Roper Technologies |
| Schweiter Technologies |
Roper Technologies and Schweiter Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roper Technologies and Schweiter Technologies
The main advantage of trading using opposite Roper Technologies and Schweiter Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roper Technologies position performs unexpectedly, Schweiter Technologies 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 Schweiter Technologies will offset losses from the drop in Schweiter Technologies' long position.| Roper Technologies vs. OneSavings Bank PLC | Roper Technologies vs. Kinnevik Investment AB | Roper Technologies vs. United Internet AG | Roper Technologies vs. Livermore Investments Group |
| Schweiter Technologies vs. Lindsell Train Investment | Schweiter Technologies vs. Broadcom | Schweiter Technologies vs. SBM Offshore NV | Schweiter Technologies vs. GreenX Metals |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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