Correlation Between Roper Technologies, and Clean Harbors

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

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

Diversification Opportunities for Roper Technologies, and Clean Harbors

-0.41

Correlation Coefficient

Roper Technologies,  Clean Harbors

Very good diversification

The 3 months correlation between Roper and Clean is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies, and Clean Harbors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clean Harbors 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 Clean Harbors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clean Harbors has no effect on the direction of Roper Technologies, i.e., Roper Technologies, and Clean Harbors go up and down completely randomly.

Pair Corralation between Roper Technologies, and Clean Harbors

Considering the 90-day investment horizon Roper Technologies, is expected to under-perform the Clean Harbors. But the stock apears to be less risky and, when comparing its historical volatility, Roper Technologies, is 1.16 times less risky than Clean Harbors. The stock trades about -0.18 of its potential returns per unit of risk. The Clean Harbors is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  23,118  in Clean Harbors on June 29, 2025 and sell it today you would earn a total of  77.00  from holding Clean Harbors or generate 0.33% return on investment over 90 days.

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

Roper Technologies,  vs.  Clean Harbors

Roper Technologies,

Risk-Adjusted Performance

Weakest

Over the last 90 days Roper Technologies, has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Clean Harbors

Risk-Adjusted Performance

Weakest

Over the last 90 days Clean Harbors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Clean Harbors is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Roper Technologies, and Clean Harbors

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

The idea behind Roper Technologies, and Clean Harbors 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.