Correlation Between BorgWarner and GreenPower
Can any of the company-specific risk be diversified away by investing in both BorgWarner and GreenPower 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 BorgWarner and GreenPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BorgWarner and GreenPower Motor, you can compare the effects of market volatilities on BorgWarner and GreenPower 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 BorgWarner with a short position of GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of BorgWarner and GreenPower.
Diversification Opportunities for BorgWarner and GreenPower
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BorgWarner and GreenPower is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BorgWarner and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor and BorgWarner 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 BorgWarner are associated (or correlated) with GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of BorgWarner i.e., BorgWarner and GreenPower go up and down completely randomly.
Pair Corralation between BorgWarner and GreenPower
Considering the 90-day investment horizon BorgWarner is expected to generate 0.52 times more return on investment than GreenPower. However, BorgWarner is 1.91 times less risky than GreenPower. It trades about 0.25 of its potential returns per unit of risk. GreenPower Motor is currently generating about -0.11 per unit of risk. If you would invest 2,890 in BorgWarner on May 6, 2025 and sell it today you would earn a total of 862.00 from holding BorgWarner or generate 29.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BorgWarner vs. GreenPower Motor
Performance |
Timeline |
BorgWarner |
GreenPower Motor |
BorgWarner and GreenPower Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BorgWarner and GreenPower
The main advantage of trading using opposite BorgWarner and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BorgWarner position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower's long position.BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
GreenPower vs. Blue Bird Corp | GreenPower vs. AYRO Inc | GreenPower vs. Hyliion Holdings Corp | GreenPower vs. Kandi Technologies Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |