Correlation Between Ross Stores and Linde Plc

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

By analyzing existing cross correlation between Ross Stores and Linde plc, you can compare the effects of market volatilities on Ross Stores and Linde Plc 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 Ross Stores with a short position of Linde Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Linde Plc.

Diversification Opportunities for Ross Stores and Linde Plc

-0.86

Correlation Coefficient

Ross Stores  Linde Plc

Pay attention - limited upside

The 3 months correlation between Ross and Linde is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Linde plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linde plc and Ross Stores 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 Ross Stores are associated (or correlated) with Linde Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linde plc has no effect on the direction of Ross Stores i.e., Ross Stores and Linde Plc go up and down completely randomly.

Pair Corralation between Ross Stores and Linde Plc

Assuming the 90 days trading horizon Ross Stores is expected to generate 1.23 times more return on investment than Linde Plc. However, Ross Stores is 1.23 times more volatile than Linde plc. It trades about 0.2 of its potential returns per unit of risk. Linde plc is currently generating about -0.22 per unit of risk. If you would invest  12,641  in Ross Stores on September 10, 2025 and sell it today you would earn a total of  2,579  from holding Ross Stores or generate 20.4% return on investment over 90 days.

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

Ross Stores  vs.  Linde plc

Ross Stores

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ross Stores are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ross Stores unveiled solid returns over the last few months and may actually be approaching a breakup point.

Linde plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Linde plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Ross Stores and Linde Plc

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

The idea behind Ross Stores and Linde plc 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.