Correlation Between EA Series and T Rowe

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

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

Diversification Opportunities for EA Series and T Rowe

-0.59

Correlation Coefficient

EA Series  T Rowe

Excellent diversification

The 3 months correlation between EA Series and TCAF is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust 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 EA Series 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 EA Series Trust 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 EA Series i.e., EA Series and T Rowe go up and down completely randomly.

Pair Corralation between EA Series and T Rowe

Allowing for the 90-day total investment horizon EA Series Trust is expected to under-perform the T Rowe. But the etf apears to be less risky and, when comparing its historical volatility, EA Series Trust is 1.01 times less risky than T Rowe. The etf trades about -0.1 of its potential returns per unit of risk. The T Rowe Price is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  3,629  in T Rowe Price on July 23, 2025 and sell it today you would earn a total of  212.00  from holding T Rowe Price or generate 5.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

EA Series Trust  vs.  T Rowe Price

EA Series Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days EA Series Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, EA Series is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

T Rowe Price

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in T Rowe Price are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, T Rowe is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with EA Series and T Rowe

The main advantage of trading using opposite EA Series and T Rowe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series 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 EA Series Trust 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.