Correlation Between Foresight Autonomous and Aston Martin

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Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and Aston Martin 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 Foresight Autonomous and Aston Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foresight Autonomous Holdings and Aston Martin Lagonda, you can compare the effects of market volatilities on Foresight Autonomous and Aston Martin 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 Foresight Autonomous with a short position of Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Aston Martin.

Diversification Opportunities for Foresight Autonomous and Aston Martin

ForesightAstonDiversified AwayForesightAstonDiversified Away100%
-0.15
  Correlation Coefficient

Good diversification

The 3 months correlation between Foresight and Aston is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and Foresight Autonomous 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 Foresight Autonomous Holdings are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Aston Martin go up and down completely randomly.

Pair Corralation between Foresight Autonomous and Aston Martin

Given the investment horizon of 90 days Foresight Autonomous Holdings is expected to generate 1.23 times more return on investment than Aston Martin. However, Foresight Autonomous is 1.23 times more volatile than Aston Martin Lagonda. It trades about 0.01 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.01 per unit of risk. If you would invest  115.00  in Foresight Autonomous Holdings on November 26, 2024 and sell it today you would lose (25.60) from holding Foresight Autonomous Holdings or give up 22.26% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Foresight Autonomous Holdings  vs.  Aston Martin Lagonda

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100150200250
JavaScript chart by amCharts 3.21.15FRSX AMGDF
       Timeline  
Foresight Autonomous 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Foresight Autonomous Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Foresight Autonomous showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb11.522.5
Aston Martin Lagonda 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aston Martin Lagonda are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal fundamental indicators, Aston Martin reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.151.21.251.31.351.41.451.51.55

Foresight Autonomous and Aston Martin Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-36.03-26.99-17.94-8.90.159.1518.6228.0837.5547.02 0.0020.0040.0060.0080.0100.0120.0140.016
JavaScript chart by amCharts 3.21.15FRSX AMGDF
       Returns  

Pair Trading with Foresight Autonomous and Aston Martin

The main advantage of trading using opposite Foresight Autonomous and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foresight Autonomous position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.
The idea behind Foresight Autonomous Holdings and Aston Martin Lagonda 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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