Correlation Between Mullen and CSX

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

By analyzing existing cross correlation between Mullen Group and CSX Corporation, you can compare the effects of market volatilities on Mullen and CSX 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 Mullen with a short position of CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen and CSX.

Diversification Opportunities for Mullen and CSX

0.56

Correlation Coefficient

Mullen  CSX

Very weak diversification

The 3 months correlation between Mullen and CSX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Group and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and Mullen 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 Mullen Group are associated (or correlated) with CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Mullen i.e., Mullen and CSX go up and down completely randomly.

Pair Corralation between Mullen and CSX

Assuming the 90 days trading horizon Mullen Group is expected to generate 0.77 times more return on investment than CSX. However, Mullen Group is 1.3 times less risky than CSX. It trades about 0.18 of its potential returns per unit of risk. CSX Corporation is currently generating about 0.14 per unit of risk. If you would invest  1,359  in Mullen Group on September 6, 2025 and sell it today you would earn a total of  170.00  from holding Mullen Group or generate 12.51% return on investment over 90 days.

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

Mullen Group  vs.  CSX Corp.

Mullen Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mullen Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, Mullen may actually be approaching a critical reversion point that can send shares even higher in January 2026.

CSX Corporation

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CSX Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, CSX may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Mullen and CSX

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

The idea behind Mullen Group and CSX Corporation 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.