Correlation Between LB Foster and Integrated Ventures
Can any of the company-specific risk be diversified away by investing in both LB Foster and Integrated Ventures 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 Integrated Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Integrated Ventures, you can compare the effects of market volatilities on LB Foster and Integrated Ventures 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 Integrated Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Integrated Ventures.
Diversification Opportunities for LB Foster and Integrated Ventures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FSTR and Integrated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Integrated Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Ventures 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 Integrated Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Ventures has no effect on the direction of LB Foster i.e., LB Foster and Integrated Ventures go up and down completely randomly.
Pair Corralation between LB Foster and Integrated Ventures
If you would invest 1,965 in LB Foster on September 3, 2024 and sell it today you would earn a total of 955.00 from holding LB Foster or generate 48.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LB Foster vs. Integrated Ventures
Performance |
| Timeline |
| LB Foster |
| Integrated Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LB Foster and Integrated Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and Integrated Ventures
The main advantage of trading using opposite LB Foster and Integrated Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Integrated Ventures 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 Integrated Ventures will offset losses from the drop in Integrated Ventures' long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| Integrated Ventures vs. Valneva SE ADR | Integrated Ventures vs. AmTrust Financial Services | Integrated Ventures vs. ServiceNow | Integrated Ventures vs. Encore Capital Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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