Correlation Between LB Foster and Green
Can any of the company-specific risk be diversified away by investing in both LB Foster and Green 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 Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Green And Hill, you can compare the effects of market volatilities on LB Foster and Green 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 Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Green.
Diversification Opportunities for LB Foster and Green
Excellent diversification
The 3 months correlation between FSTR and Green is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Green And Hill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green And Hill 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 Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green And Hill has no effect on the direction of LB Foster i.e., LB Foster and Green go up and down completely randomly.
Pair Corralation between LB Foster and Green
If you would invest 1,911 in LB Foster on September 4, 2024 and sell it today you would earn a total of 1,034 from holding LB Foster or generate 54.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
LB Foster vs. Green And Hill
Performance |
| Timeline |
| LB Foster |
| Green And Hill |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LB Foster and Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and Green
The main advantage of trading using opposite LB Foster and Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Green 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 Green will offset losses from the drop in Green's long position.| LB Foster vs. Ayala | LB Foster vs. Steel Partners Holdings | LB Foster vs. FTAI Infrastructure | LB Foster vs. Griffon |
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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