Correlation Between Custom Truck and RBC Bearings
Can any of the company-specific risk be diversified away by investing in both Custom Truck and RBC Bearings 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 RBC Bearings 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 RBC Bearings Incorporated, you can compare the effects of market volatilities on Custom Truck and RBC Bearings 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 RBC Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and RBC Bearings.
Diversification Opportunities for Custom Truck and RBC Bearings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Custom and RBC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and RBC Bearings Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Bearings 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 RBC Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Bearings has no effect on the direction of Custom Truck i.e., Custom Truck and RBC Bearings go up and down completely randomly.
Pair Corralation between Custom Truck and RBC Bearings
Given the investment horizon of 90 days Custom Truck is expected to generate 1.95 times less return on investment than RBC Bearings. In addition to that, Custom Truck is 1.69 times more volatile than RBC Bearings Incorporated. It trades about 0.12 of its total potential returns per unit of risk. RBC Bearings Incorporated is currently generating about 0.38 per unit of volatility. If you would invest 44,977 in RBC Bearings Incorporated on October 19, 2025 and sell it today you would earn a total of 4,905 from holding RBC Bearings Incorporated or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. RBC Bearings Incorporated
Performance |
| Timeline |
| Custom Truck One |
| RBC Bearings |
Custom Truck and RBC Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and RBC Bearings
The main advantage of trading using opposite Custom Truck and RBC Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, RBC Bearings 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 RBC Bearings will offset losses from the drop in RBC Bearings' long position.| Custom Truck vs. Hertz Global Holdings | Custom Truck vs. ManpowerGroup | Custom Truck vs. PROG Holdings | Custom Truck vs. Alta Equipment Group |
| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Allegheny Technologies Incorporated | RBC Bearings vs. Graco Inc | RBC Bearings vs. Avery Dennison Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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