Correlation Between GreenPower and MSC Industrial
Can any of the company-specific risk be diversified away by investing in both GreenPower and MSC Industrial 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 MSC Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenPower Motor and MSC Industrial Direct, you can compare the effects of market volatilities on GreenPower and MSC Industrial 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 MSC Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenPower and MSC Industrial.
Diversification Opportunities for GreenPower and MSC Industrial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenPower and MSC is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding GreenPower Motor and MSC Industrial Direct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSC Industrial Direct 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 MSC Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSC Industrial Direct has no effect on the direction of GreenPower i.e., GreenPower and MSC Industrial go up and down completely randomly.
Pair Corralation between GreenPower and MSC Industrial
Allowing for the 90-day total investment horizon GreenPower Motor is expected to under-perform the MSC Industrial. In addition to that, GreenPower is 4.45 times more volatile than MSC Industrial Direct. It trades about -0.02 of its total potential returns per unit of risk. MSC Industrial Direct is currently generating about 0.12 per unit of volatility. If you would invest 8,122 in MSC Industrial Direct on May 29, 2025 and sell it today you would earn a total of 944.00 from holding MSC Industrial Direct or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenPower Motor vs. MSC Industrial Direct
Performance |
| Timeline |
| GreenPower Motor |
| MSC Industrial Direct |
GreenPower and MSC Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenPower and MSC Industrial
The main advantage of trading using opposite GreenPower and MSC Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenPower position performs unexpectedly, MSC Industrial 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 MSC Industrial will offset losses from the drop in MSC Industrial's long position.| GreenPower vs. Blue Bird Corp | GreenPower vs. AYRO Inc | GreenPower vs. Hyliion Holdings Corp | GreenPower vs. Kandi Technologies Group |
| MSC Industrial vs. DXP Enterprises | MSC Industrial vs. Core Main | MSC Industrial vs. WW Grainger | MSC Industrial vs. SiteOne Landscape Supply |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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