Correlation Between GreenPower and T Rowe

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

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

Diversification Opportunities for GreenPower and T Rowe

-0.52

Correlation Coefficient

GreenPower  T Rowe

Excellent diversification

The 3 months correlation between GreenPower and RPGIX is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GreenPower Motor 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 GreenPower 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 GreenPower Motor 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 GreenPower i.e., GreenPower and T Rowe go up and down completely randomly.

Pair Corralation between GreenPower and T Rowe

Allowing for the 90-day total investment horizon GreenPower Motor is expected to under-perform the T Rowe. In addition to that, GreenPower is 7.28 times more volatile than T Rowe Price. It trades about -0.03 of its total potential returns per unit of risk. T Rowe Price is currently generating about 0.13 per unit of volatility. If you would invest  2,113  in T Rowe Price on May 14, 2025 and sell it today you would earn a total of  141.00  from holding T Rowe Price or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

GreenPower Motor  vs.  T Rowe Price

GreenPower Motor

Risk-Adjusted Performance

Weakest

Over the last 90 days GreenPower Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

T Rowe Price

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, T Rowe may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with GreenPower and T Rowe

The main advantage of trading using opposite GreenPower and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPower 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 GreenPower Motor 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.