Correlation Between LB Foster and NantKwest
Can any of the company-specific risk be diversified away by investing in both LB Foster and NantKwest 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 NantKwest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and NantKwest, you can compare the effects of market volatilities on LB Foster and NantKwest 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 NantKwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and NantKwest.
Diversification Opportunities for LB Foster and NantKwest
Pay attention - limited upside
The 3 months correlation between FSTR and NantKwest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and NantKwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NantKwest 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 NantKwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NantKwest has no effect on the direction of LB Foster i.e., LB Foster and NantKwest go up and down completely randomly.
Pair Corralation between LB Foster and NantKwest
If you would invest 2,336 in LB Foster on September 13, 2024 and sell it today you would earn a total of 571.00 from holding LB Foster or generate 24.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
LB Foster vs. NantKwest
Performance |
| Timeline |
| LB Foster |
| NantKwest |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LB Foster and NantKwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and NantKwest
The main advantage of trading using opposite LB Foster and NantKwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, NantKwest 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 NantKwest will offset losses from the drop in NantKwest's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| NantKwest vs. Mesa Air Group | NantKwest vs. SmartStop Self Storage | NantKwest vs. LB Foster | NantKwest vs. United Airlines Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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