Correlation Between Flowers Foods and T Rowe

Can any of the company-specific risk be diversified away by investing in both Flowers Foods and T Rowe 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 Flowers Foods and T Rowe into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flowers Foods and T Rowe Price, you can compare the effects of market volatilities on Flowers Foods and T Rowe 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 Flowers Foods with a short position of T Rowe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flowers Foods and T Rowe.

Diversification Opportunities for Flowers Foods and T Rowe

-0.58

Correlation Coefficient

Flowers Foods  T Rowe

Excellent diversification

The 3 months correlation between Flowers and RRTNX is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Flowers Foods and T Rowe Price in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rowe Price and Flowers Foods 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 Flowers Foods are associated (or correlated) with T Rowe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rowe Price has no effect on the direction of Flowers Foods i.e., Flowers Foods and T Rowe go up and down completely randomly.

Pair Corralation between Flowers Foods and T Rowe

Considering the 90-day investment horizon Flowers Foods is expected to under-perform the T Rowe. In addition to that, Flowers Foods is 4.3 times more volatile than T Rowe Price. It trades about -0.08 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.21 per unit of volatility. If you would invest  1,629  in T Rowe Price on May 6, 2025 and sell it today you would earn a total of  76.00  from holding T Rowe Price or generate 4.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Flowers Foods  vs.  T Rowe Price

Flowers Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flowers Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

T Rowe Price

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, T Rowe is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Flowers Foods and T Rowe

The main advantage of trading using opposite Flowers Foods and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flowers Foods position performs unexpectedly, T Rowe 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 T Rowe will offset losses from the drop in T Rowe's long position.

The idea behind Flowers Foods and T Rowe Price 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.

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 CEOs Directory module to screen CEOs from public companies around the world.