Correlation Between Custom Truck and First Financial
Can any of the company-specific risk be diversified away by investing in both Custom Truck and First Financial 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 First Financial 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 First Financial, you can compare the effects of market volatilities on Custom Truck and First Financial 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 First Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and First Financial.
Diversification Opportunities for Custom Truck and First Financial
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Custom and First is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and First Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Financial 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 First Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Financial has no effect on the direction of Custom Truck i.e., Custom Truck and First Financial go up and down completely randomly.
Pair Corralation between Custom Truck and First Financial
Given the investment horizon of 90 days Custom Truck One is expected to generate 1.59 times more return on investment than First Financial. However, Custom Truck is 1.59 times more volatile than First Financial. It trades about 0.2 of its potential returns per unit of risk. First Financial is currently generating about 0.14 per unit of risk. If you would invest 450.00 in Custom Truck One on June 3, 2025 and sell it today you would earn a total of 164.00 from holding Custom Truck One or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. First Financial
Performance |
| Timeline |
| Custom Truck One |
| First Financial |
Custom Truck and First Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and First Financial
The main advantage of trading using opposite Custom Truck and First Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, First Financial 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 First Financial will offset losses from the drop in First Financial's long position.| Custom Truck vs. Alta Equipment Group | Custom Truck vs. McGrath RentCorp | Custom Truck vs. GATX Corporation | Custom Truck vs. Mega Matrix Corp |
| First Financial vs. 1st Source | First Financial vs. Great Southern Bancorp | First Financial vs. Waterstone Financial | First Financial vs. Community Trust Bancorp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world |