Correlation Between Custom Truck and US GoldMining

Can any of the company-specific risk be diversified away by investing in both Custom Truck and US GoldMining 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 US GoldMining 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 US GoldMining Common, you can compare the effects of market volatilities on Custom Truck and US GoldMining 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 US GoldMining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and US GoldMining.

Diversification Opportunities for Custom Truck and US GoldMining

-0.8

Correlation Coefficient

Custom Truck  US GoldMining

Pay attention - limited upside

The 3 months correlation between Custom and USGO is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and US GoldMining Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US GoldMining Common 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 US GoldMining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US GoldMining Common has no effect on the direction of Custom Truck i.e., Custom Truck and US GoldMining go up and down completely randomly.

Pair Corralation between Custom Truck and US GoldMining

Given the investment horizon of 90 days Custom Truck One is expected to generate 0.78 times more return on investment than US GoldMining. However, Custom Truck One is 1.28 times less risky than US GoldMining. It trades about 0.21 of its potential returns per unit of risk. US GoldMining Common is currently generating about -0.06 per unit of risk. If you would invest  437.00  in Custom Truck One on May 21, 2025 and sell it today you would earn a total of  166.00  from holding Custom Truck One or generate 37.99% return on investment over 90 days.

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

Custom Truck One  vs.  US GoldMining Common

Custom Truck One

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Custom Truck One are ranked lower than 16 (%) 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.

US GoldMining Common

Risk-Adjusted Performance

Weakest

Over the last 90 days US GoldMining Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Custom Truck and US GoldMining

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

The idea behind Custom Truck One and US GoldMining Common 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.