Correlation Between Foresight Autonomous and BorgWarner
Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and BorgWarner 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 BorgWarner 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 BorgWarner, you can compare the effects of market volatilities on Foresight Autonomous and BorgWarner 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 BorgWarner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and BorgWarner.
Diversification Opportunities for Foresight Autonomous and BorgWarner
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foresight and BorgWarner is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and BorgWarner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BorgWarner 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 BorgWarner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BorgWarner has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and BorgWarner go up and down completely randomly.
Pair Corralation between Foresight Autonomous and BorgWarner
Given the investment horizon of 90 days Foresight Autonomous Holdings is expected to under-perform the BorgWarner. In addition to that, Foresight Autonomous is 5.81 times more volatile than BorgWarner. It trades about -0.17 of its total potential returns per unit of risk. BorgWarner is currently generating about 0.19 per unit of volatility. If you would invest 3,132 in BorgWarner on November 2, 2024 and sell it today you would earn a total of 153.00 from holding BorgWarner or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foresight Autonomous Holdings vs. BorgWarner
Performance |
| Timeline |
| Foresight Autonomous |
| BorgWarner |
Foresight Autonomous and BorgWarner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foresight Autonomous and BorgWarner
The main advantage of trading using opposite Foresight Autonomous and BorgWarner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foresight Autonomous position performs unexpectedly, BorgWarner 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 BorgWarner will offset losses from the drop in BorgWarner's long position.| Foresight Autonomous vs. Aeva Technologies | Foresight Autonomous vs. Luminar Technologies | Foresight Autonomous vs. Hesai Group American | Foresight Autonomous vs. Aeye Inc |
| BorgWarner vs. Lear Corporation | BorgWarner vs. Autoliv | BorgWarner vs. Fox Factory Holding | BorgWarner vs. LKQ Corporation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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