Correlation Between RBC Bearings and CleanCore Solutions

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

By analyzing existing cross correlation between RBC Bearings Incorporated and CleanCore Solutions, you can compare the effects of market volatilities on RBC Bearings and CleanCore Solutions 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 RBC Bearings with a short position of CleanCore Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBC Bearings and CleanCore Solutions.

Diversification Opportunities for RBC Bearings and CleanCore Solutions

0.67

Correlation Coefficient

RBC Bearings  CleanCore Solutions

Poor diversification

The 3 months correlation between RBC and CleanCore is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding RBC Bearings Incorporated and CleanCore Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanCore Solutions and RBC Bearings 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 RBC Bearings Incorporated are associated (or correlated) with CleanCore Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanCore Solutions has no effect on the direction of RBC Bearings i.e., RBC Bearings and CleanCore Solutions go up and down completely randomly.

Pair Corralation between RBC Bearings and CleanCore Solutions

Considering the 90-day investment horizon RBC Bearings is expected to generate 13.85 times less return on investment than CleanCore Solutions. But when comparing it to its historical volatility, RBC Bearings Incorporated is 6.7 times less risky than CleanCore Solutions. It trades about 0.11 of its potential returns per unit of risk. CleanCore Solutions is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  174.00  in CleanCore Solutions on May 27, 2025 and sell it today you would earn a total of  327.50  from holding CleanCore Solutions or generate 188.22% return on investment over 90 days.

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

RBC Bearings Incorporated  vs.  CleanCore Solutions

RBC Bearings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Bearings Incorporated are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, RBC Bearings may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CleanCore Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CleanCore Solutions are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CleanCore Solutions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with RBC Bearings and CleanCore Solutions

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

The idea behind RBC Bearings Incorporated and CleanCore Solutions 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.