Correlation Between Roper Technologies, and Dassault Systemes

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

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

Diversification Opportunities for Roper Technologies, and Dassault Systemes

0.02

Correlation Coefficient

Roper Technologies,  Dassault Systemes

Significant diversification

The 3 months correlation between Roper and Dassault is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies, Common and Dassault Systemes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Systemes 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, Common are associated (or correlated) with Dassault Systemes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Systemes has no effect on the direction of Roper Technologies, i.e., Roper Technologies, and Dassault Systemes go up and down completely randomly.

Pair Corralation between Roper Technologies, and Dassault Systemes

If you would invest  3,859  in Dassault Systemes SA on September 18, 2024 and sell it today you would earn a total of  0.00  from holding Dassault Systemes SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Roper Technologies, Common  vs.  Dassault Systemes SA

Roper Technologies,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Roper Technologies, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Roper Technologies, is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Dassault Systemes

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dassault Systemes SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Dassault Systemes is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Roper Technologies, and Dassault Systemes

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

The idea behind Roper Technologies, Common and Dassault Systemes SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.