Correlation Between Ametek and Rockwell Automation
Can any of the company-specific risk be diversified away by investing in both Ametek and Rockwell Automation 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 Ametek and Rockwell Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ametek Inc and Rockwell Automation, you can compare the effects of market volatilities on Ametek and Rockwell Automation 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 Ametek with a short position of Rockwell Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ametek and Rockwell Automation.
Diversification Opportunities for Ametek and Rockwell Automation
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ametek and Rockwell is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and Rockwell Automation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rockwell Automation and Ametek 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 Ametek Inc are associated (or correlated) with Rockwell Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rockwell Automation has no effect on the direction of Ametek i.e., Ametek and Rockwell Automation go up and down completely randomly.
Pair Corralation between Ametek and Rockwell Automation
Considering the 90-day investment horizon Ametek is expected to generate 1.25 times less return on investment than Rockwell Automation. But when comparing it to its historical volatility, Ametek Inc is 1.02 times less risky than Rockwell Automation. It trades about 0.19 of its potential returns per unit of risk. Rockwell Automation is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 33,253 in Rockwell Automation on October 10, 2025 and sell it today you would earn a total of 7,681 from holding Rockwell Automation or generate 23.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ametek Inc vs. Rockwell Automation
Performance |
| Timeline |
| Ametek Inc |
| Rockwell Automation |
Ametek and Rockwell Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ametek and Rockwell Automation
The main advantage of trading using opposite Ametek and Rockwell Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek position performs unexpectedly, Rockwell Automation 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 Rockwell Automation will offset losses from the drop in Rockwell Automation's long position.| Ametek vs. Roper Technologies | Ametek vs. Rockwell Automation | Ametek vs. WW Grainger | Ametek vs. Fastenal Company |
| Rockwell Automation vs. Xylem Inc | Rockwell Automation vs. Ametek Inc | Rockwell Automation vs. Roper Technologies | Rockwell Automation vs. Otis Worldwide Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |