Correlation Between Zedcor Energy and CSX

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

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

Diversification Opportunities for Zedcor Energy and CSX

0.76

Correlation Coefficient

Zedcor Energy  CSX

Poor diversification

The 3 months correlation between Zedcor and CSX is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Zedcor Energy and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation and Zedcor Energy 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 Zedcor Energy 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 Zedcor Energy i.e., Zedcor Energy and CSX go up and down completely randomly.

Pair Corralation between Zedcor Energy and CSX

Assuming the 90 days horizon Zedcor Energy is expected to generate 2.36 times more return on investment than CSX. However, Zedcor Energy is 2.36 times more volatile than CSX Corporation. It trades about 0.18 of its potential returns per unit of risk. CSX Corporation is currently generating about 0.08 per unit of risk. If you would invest  436.00  in Zedcor Energy on August 26, 2025 and sell it today you would earn a total of  164.00  from holding Zedcor Energy or generate 37.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Zedcor Energy  vs.  CSX Corp.

Zedcor Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zedcor Energy are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Zedcor Energy showed solid returns over the last few months and may actually be approaching a breakup point.

CSX Corporation

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CSX Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, CSX may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Zedcor Energy and CSX

The main advantage of trading using opposite Zedcor Energy and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedcor Energy 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 Zedcor Energy 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.