Correlation Between Roper Technologies and Ferrexpo PLC
Can any of the company-specific risk be diversified away by investing in both Roper Technologies and Ferrexpo PLC 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 Ferrexpo PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Roper Technologies and Ferrexpo PLC, you can compare the effects of market volatilities on Roper Technologies and Ferrexpo PLC 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 Ferrexpo PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roper Technologies and Ferrexpo PLC.
Diversification Opportunities for Roper Technologies and Ferrexpo PLC
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Roper and Ferrexpo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies and Ferrexpo PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferrexpo PLC 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 Ferrexpo PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferrexpo PLC has no effect on the direction of Roper Technologies i.e., Roper Technologies and Ferrexpo PLC go up and down completely randomly.
Pair Corralation between Roper Technologies and Ferrexpo PLC
Assuming the 90 days trading horizon Roper Technologies is expected to generate 1.21 times more return on investment than Ferrexpo PLC. However, Roper Technologies is 1.21 times more volatile than Ferrexpo PLC. It trades about 0.03 of its potential returns per unit of risk. Ferrexpo PLC is currently generating about 0.0 per unit of risk. If you would invest 41,192 in Roper Technologies on December 4, 2024 and sell it today you would earn a total of 17,218 from holding Roper Technologies or generate 41.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.79% |
| Values | Daily Returns |
Roper Technologies vs. Ferrexpo PLC
Performance |
| Timeline |
| Roper Technologies |
| Ferrexpo PLC |
Roper Technologies and Ferrexpo PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Roper Technologies and Ferrexpo PLC
The main advantage of trading using opposite Roper Technologies and Ferrexpo PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Roper Technologies position performs unexpectedly, Ferrexpo PLC 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 Ferrexpo PLC will offset losses from the drop in Ferrexpo PLC's long position.| Roper Technologies vs. HCA Healthcare | Roper Technologies vs. BlackRock Frontiers Investment | Roper Technologies vs. Ecclesiastical Insurance Office | Roper Technologies vs. The Mercantile Investment |
| Ferrexpo PLC vs. United Utilities Group | Ferrexpo PLC vs. Grand Vision Media | Ferrexpo PLC vs. Metals Exploration Plc | Ferrexpo PLC vs. JD Sports Fashion |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |