Correlation Between Custom Truck and Paiute Oil

Can any of the company-specific risk be diversified away by investing in both Custom Truck and Paiute Oil 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 Custom Truck and Paiute Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Custom Truck One and Paiute Oil Mining, you can compare the effects of market volatilities on Custom Truck and Paiute Oil 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 Custom Truck with a short position of Paiute Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Paiute Oil.

Diversification Opportunities for Custom Truck and Paiute Oil

0.0

Correlation Coefficient

Custom Truck  Paiute Oil

Pay attention - limited upside

The 3 months correlation between Custom and Paiute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Paiute Oil Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paiute Oil Mining and Custom Truck 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 Custom Truck One are associated (or correlated) with Paiute Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paiute Oil Mining has no effect on the direction of Custom Truck i.e., Custom Truck and Paiute Oil go up and down completely randomly.

Pair Corralation between Custom Truck and Paiute Oil

If you would invest  448.00  in Custom Truck One on May 12, 2025 and sell it today you would earn a total of  122.00  from holding Custom Truck One or generate 27.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Custom Truck One  vs.  Paiute Oil Mining

Custom Truck One

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Custom Truck One are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Custom Truck unveiled solid returns over the last few months and may actually be approaching a breakup point.

Paiute Oil Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days Paiute Oil Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Paiute Oil is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Custom Truck and Paiute Oil

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

The idea behind Custom Truck One and Paiute Oil Mining 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 Transaction History module to view history of all your transactions and understand their impact on performance.