Correlation Between Zoomcar Holdings and Custom Truck

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

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

Diversification Opportunities for Zoomcar Holdings and Custom Truck

-0.42

Correlation Coefficient

Zoomcar Holdings  Custom Truck

Very good diversification

The 3 months correlation between Zoomcar and Custom is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Zoomcar Holdings 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 Zoomcar Holdings 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 Zoomcar Holdings 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 Zoomcar Holdings i.e., Zoomcar Holdings and Custom Truck go up and down completely randomly.

Pair Corralation between Zoomcar Holdings and Custom Truck

Assuming the 90 days horizon Zoomcar Holdings is expected to generate 21.95 times more return on investment than Custom Truck. However, Zoomcar Holdings is 21.95 times more volatile than Custom Truck One. It trades about 0.08 of its potential returns per unit of risk. Custom Truck One is currently generating about 0.25 per unit of risk. If you would invest  2.00  in Zoomcar Holdings on May 4, 2025 and sell it today you would lose (1.48) from holding Zoomcar Holdings or give up 74.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	17.46%
Values	Daily Returns

Zoomcar Holdings  vs.  Custom Truck One

Zoomcar Holdings

Risk-Adjusted Performance

Modest

Over the last 90 days Zoomcar Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent basic indicators, Zoomcar Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

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 19 (%) 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 Zoomcar Holdings and Custom Truck

The main advantage of trading using opposite Zoomcar Holdings and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoomcar Holdings 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 Zoomcar Holdings 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.