Correlation Between Richtech Robotics and Custom Truck

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

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

Diversification Opportunities for Richtech Robotics and Custom Truck

-0.33

Correlation Coefficient

Richtech Robotics  Custom Truck

Very good diversification

The 3 months correlation between Richtech and Custom is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Richtech Robotics Class and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One and Richtech Robotics 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 Richtech Robotics Class are associated (or correlated) with Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Richtech Robotics i.e., Richtech Robotics and Custom Truck go up and down completely randomly.

Pair Corralation between Richtech Robotics and Custom Truck

Allowing for the 90-day total investment horizon Richtech Robotics is expected to generate 3.41 times less return on investment than Custom Truck. In addition to that, Richtech Robotics is 2.68 times more volatile than Custom Truck One. It trades about 0.02 of its total potential returns per unit of risk. Custom Truck One is currently generating about 0.23 per unit of volatility. If you would invest  423.00  in Custom Truck One on April 29, 2025 and sell it today you would earn a total of  173.00  from holding Custom Truck One or generate 40.9% return on investment over 90 days.

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

Richtech Robotics Class  vs.  Custom Truck One

Richtech Robotics Class

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Richtech Robotics Class are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Richtech Robotics may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 17 (%) 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.

Pair Trading with Richtech Robotics and Custom Truck

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

The idea behind Richtech Robotics Class and Custom Truck One 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.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.