Correlation Between LB Foster and Crixus Bh3
Can any of the company-specific risk be diversified away by investing in both LB Foster and Crixus Bh3 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 LB Foster and Crixus Bh3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Crixus Bh3 Acquisition, you can compare the effects of market volatilities on LB Foster and Crixus Bh3 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 LB Foster with a short position of Crixus Bh3. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Crixus Bh3.
Diversification Opportunities for LB Foster and Crixus Bh3
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between FSTR and Crixus is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Crixus Bh3 Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crixus Bh3 Acquisition and LB Foster 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 LB Foster are associated (or correlated) with Crixus Bh3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crixus Bh3 Acquisition has no effect on the direction of LB Foster i.e., LB Foster and Crixus Bh3 go up and down completely randomly.
Pair Corralation between LB Foster and Crixus Bh3
If you would invest 1,957 in LB Foster on August 30, 2024 and sell it today you would earn a total of 873.00 from holding LB Foster or generate 44.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
LB Foster vs. Crixus Bh3 Acquisition
Performance |
| Timeline |
| LB Foster |
| Crixus Bh3 Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LB Foster and Crixus Bh3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and Crixus Bh3
The main advantage of trading using opposite LB Foster and Crixus Bh3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Crixus Bh3 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 Crixus Bh3 will offset losses from the drop in Crixus Bh3's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| Crixus Bh3 vs. GMS Inc | Crixus Bh3 vs. Asbury Automotive Group | Crixus Bh3 vs. LB Foster | Crixus Bh3 vs. Saia Inc |
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.
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