Correlation Between Plug Power and RBC Quant
Can any of the company-specific risk be diversified away by investing in both Plug Power and RBC Quant 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 Plug Power and RBC Quant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and RBC Quant European, you can compare the effects of market volatilities on Plug Power and RBC Quant 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 Plug Power with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and RBC Quant.
Diversification Opportunities for Plug Power and RBC Quant
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plug and RBC is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and RBC Quant European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant European and Plug Power 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 Plug Power are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant European has no effect on the direction of Plug Power i.e., Plug Power and RBC Quant go up and down completely randomly.
Pair Corralation between Plug Power and RBC Quant
Given the investment horizon of 90 days Plug Power is expected to under-perform the RBC Quant. In addition to that, Plug Power is 8.26 times more volatile than RBC Quant European. It trades about -0.05 of its total potential returns per unit of risk. RBC Quant European is currently generating about 0.27 per unit of volatility. If you would invest 3,223 in RBC Quant European on November 3, 2025 and sell it today you would earn a total of 370.00 from holding RBC Quant European or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Plug Power vs. RBC Quant European
Performance |
| Timeline |
| Plug Power |
| RBC Quant European |
Plug Power and RBC Quant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and RBC Quant
The main advantage of trading using opposite Plug Power and RBC Quant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, RBC Quant 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 RBC Quant will offset losses from the drop in RBC Quant's long position.| Plug Power vs. GrafTech International | Plug Power vs. Hayward Holdings | Plug Power vs. Amprius Technologies | Plug Power vs. Eos Energy Enterprises |
| RBC Quant vs. Brompton European Dividend | RBC Quant vs. Mackenzie International Equity | RBC Quant vs. RBC Quant European | RBC Quant vs. iShares MSCI Min |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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