Correlation Between Foresight Autonomous and Westport Fuel
Can any of the company-specific risk be diversified away by investing in both Foresight Autonomous and Westport Fuel 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 Westport Fuel 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 Westport Fuel Systems, you can compare the effects of market volatilities on Foresight Autonomous and Westport Fuel 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 Westport Fuel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foresight Autonomous and Westport Fuel.
Diversification Opportunities for Foresight Autonomous and Westport Fuel
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Foresight and Westport is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Foresight Autonomous Holdings and Westport Fuel Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westport Fuel Systems 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 Westport Fuel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westport Fuel Systems has no effect on the direction of Foresight Autonomous i.e., Foresight Autonomous and Westport Fuel go up and down completely randomly.
Pair Corralation between Foresight Autonomous and Westport Fuel
Given the investment horizon of 90 days Foresight Autonomous Holdings is expected to under-perform the Westport Fuel. In addition to that, Foresight Autonomous is 1.4 times more volatile than Westport Fuel Systems. It trades about -0.28 of its total potential returns per unit of risk. Westport Fuel Systems is currently generating about 0.25 per unit of volatility. If you would invest 382.00 in Westport Fuel Systems on November 18, 2024 and sell it today you would earn a total of 76.00 from holding Westport Fuel Systems or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Foresight Autonomous Holdings vs. Westport Fuel Systems
Performance |
| Timeline |
| Foresight Autonomous |
| Westport Fuel Systems |
Foresight Autonomous and Westport Fuel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foresight Autonomous and Westport Fuel
The main advantage of trading using opposite Foresight Autonomous and Westport Fuel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foresight Autonomous position performs unexpectedly, Westport Fuel 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 Westport Fuel will offset losses from the drop in Westport Fuel's long position.| Foresight Autonomous vs. Aeva Technologies, Common | Foresight Autonomous vs. Luminar Technologies | Foresight Autonomous vs. Hesai Group American | Foresight Autonomous vs. Aeye Inc |
| Westport Fuel vs. Foresight Autonomous Holdings | Westport Fuel vs. Hyliion Holdings Corp | Westport Fuel vs. American Axle Manufacturing | Westport Fuel vs. Gentex |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |