Correlation Between Roper Technologies, and General Dynamics

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

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

Diversification Opportunities for Roper Technologies, and General Dynamics

-0.77

Correlation Coefficient

Roper Technologies,  General Dynamics

Pay attention - limited upside

The 3 months correlation between Roper and General is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Roper Technologies, and General Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Dynamics 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 General Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Dynamics has no effect on the direction of Roper Technologies, i.e., Roper Technologies, and General Dynamics go up and down completely randomly.

Pair Corralation between Roper Technologies, and General Dynamics

Considering the 90-day investment horizon Roper Technologies, is expected to under-perform the General Dynamics. In addition to that, Roper Technologies, is 1.5 times more volatile than General Dynamics. It trades about -0.28 of its total potential returns per unit of risk. General Dynamics is currently generating about 0.04 per unit of volatility. If you would invest  34,212  in General Dynamics on August 4, 2025 and sell it today you would earn a total of  278.00  from holding General Dynamics or generate 0.81% 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.  General Dynamics

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 inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

General Dynamics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in General Dynamics are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, General Dynamics may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Roper Technologies, and General Dynamics

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

The idea behind Roper Technologies, and General Dynamics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.