Correlation Between First Reliance and Roper Technologies
Can any of the company-specific risk be diversified away by investing in both First Reliance and Roper 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 First Reliance and Roper Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Reliance Bancshares and Roper Technologies, you can compare the effects of market volatilities on First Reliance and Roper 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 First Reliance with a short position of Roper Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Reliance and Roper Technologies.
Diversification Opportunities for First Reliance and Roper Technologies
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Roper is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding First Reliance Bancshares and Roper Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roper Technologies and First Reliance 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 First Reliance Bancshares are associated (or correlated) with Roper Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roper Technologies has no effect on the direction of First Reliance i.e., First Reliance and Roper Technologies go up and down completely randomly.
Pair Corralation between First Reliance and Roper Technologies
Given the investment horizon of 90 days First Reliance Bancshares is expected to under-perform the Roper Technologies. In addition to that, First Reliance is 2.28 times more volatile than Roper Technologies. It trades about -0.16 of its total potential returns per unit of risk. Roper Technologies is currently generating about -0.01 per unit of volatility. If you would invest 44,589 in Roper Technologies on October 4, 2025 and sell it today you would lose (76.00) from holding Roper Technologies or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
First Reliance Bancshares vs. Roper Technologies
Performance |
| Timeline |
| First Reliance Bancshares |
| Roper Technologies |
First Reliance and Roper Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Reliance and Roper Technologies
The main advantage of trading using opposite First Reliance and Roper Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Reliance position performs unexpectedly, Roper 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 Roper Technologies will offset losses from the drop in Roper Technologies' long position.| First Reliance vs. FNB Inc | First Reliance vs. Apollo Bancorp | First Reliance vs. Commercial National Financial | First Reliance vs. Community Bankers |
| Roper Technologies vs. Ametek Inc | Roper Technologies vs. Rockwell Automation | Roper Technologies vs. Ferguson Plc | Roper Technologies vs. WW Grainger |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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