Correlation Between Roper Technologies, and Agilent Technologies

Can any of the company-specific risk be diversified away by investing in both Roper Technologies, and Agilent 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 Agilent 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 Agilent Technologies, you can compare the effects of market volatilities on Roper Technologies, and Agilent 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 Agilent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Roper Technologies, and Agilent Technologies.

Diversification Opportunities for Roper Technologies, and Agilent Technologies

0.43

Correlation Coefficient

Roper Technologies,  Agilent Technologies

Very weak diversification

The 3 months correlation between Roper and Agilent is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies, and Agilent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilent 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 Agilent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilent Technologies has no effect on the direction of Roper Technologies, i.e., Roper Technologies, and Agilent Technologies go up and down completely randomly.

Pair Corralation between Roper Technologies, and Agilent Technologies

Assuming the 90 days trading horizon Roper Technologies, is expected to generate 124.75 times less return on investment than Agilent Technologies. But when comparing it to its historical volatility, Roper Technologies, is 108.27 times less risky than Agilent Technologies. It trades about 0.13 of its potential returns per unit of risk. Agilent Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  29,126  in Agilent Technologies on April 24, 2025 and sell it today you would earn a total of  3,660  from holding Agilent Technologies or generate 12.57% return on investment over 90 days.

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

Roper Technologies,  vs.  Agilent Technologies

Roper Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Roper Technologies, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Roper Technologies, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Agilent Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Agilent Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Agilent Technologies may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Roper Technologies, and Agilent Technologies

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

The idea behind Roper Technologies, and Agilent Technologies 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.