Correlation Between Core Molding and Radiant Logistics

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

By analyzing existing cross correlation between Core Molding Technologies and Radiant Logistics, you can compare the effects of market volatilities on Core Molding and Radiant Logistics 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 Core Molding with a short position of Radiant Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Molding and Radiant Logistics.

Diversification Opportunities for Core Molding and Radiant Logistics

0.25

Correlation Coefficient

Core Molding  Radiant Logistics

Modest diversification

The 3 months correlation between Core and Radiant is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Core Molding Technologies and Radiant Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Logistics and Core Molding 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 Core Molding Technologies are associated (or correlated) with Radiant Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Logistics has no effect on the direction of Core Molding i.e., Core Molding and Radiant Logistics go up and down completely randomly.

Pair Corralation between Core Molding and Radiant Logistics

Considering the 90-day investment horizon Core Molding Technologies is expected to generate 1.04 times more return on investment than Radiant Logistics. However, Core Molding is 1.04 times more volatile than Radiant Logistics. It trades about 0.06 of its potential returns per unit of risk. Radiant Logistics is currently generating about 0.02 per unit of risk. If you would invest  1,679  in Core Molding Technologies on August 3, 2025 and sell it today you would earn a total of  112.00  from holding Core Molding Technologies or generate 6.67% return on investment over 90 days.

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

Core Molding Technologies  vs.  Radiant Logistics

Core Molding Technologies

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Core Molding Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak primary indicators, Core Molding may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Radiant Logistics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Radiant Logistics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Radiant Logistics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Core Molding and Radiant Logistics

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

The idea behind Core Molding Technologies and Radiant Logistics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.