Correlation Between Roper Technologies, and PTC

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

By analyzing existing cross correlation between Roper Technologies, and PTC Inc, you can compare the effects of market volatilities on Roper Technologies, and PTC 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 PTC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roper Technologies, and PTC.

Diversification Opportunities for Roper Technologies, and PTC

-0.69

Correlation Coefficient

Roper Technologies,  PTC

Excellent diversification

The 3 months correlation between Roper and PTC is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies, and PTC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PTC Inc 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 PTC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PTC Inc has no effect on the direction of Roper Technologies, i.e., Roper Technologies, and PTC go up and down completely randomly.

Pair Corralation between Roper Technologies, and PTC

Considering the 90-day investment horizon Roper Technologies, is expected to generate 0.75 times more return on investment than PTC. However, Roper Technologies, is 1.33 times less risky than PTC. It trades about 0.14 of its potential returns per unit of risk. PTC Inc is currently generating about -0.13 per unit of risk. If you would invest  52,639  in Roper Technologies, on December 26, 2024 and sell it today you would earn a total of  5,632  from holding Roper Technologies, or generate 10.7% return on investment over 90 days.

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

Roper Technologies,  vs.  PTC Inc

Roper Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roper Technologies, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Roper Technologies, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

PTC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTC Inc 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 rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Roper Technologies, and PTC

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

The idea behind Roper Technologies, and PTC 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.