Correlation Between LB Foster and 06051GKL2
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By analyzing existing cross correlation between LB Foster and BAC 3846 08 MAR 37, you can compare the effects of market volatilities on LB Foster and 06051GKL2 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 06051GKL2. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and 06051GKL2.
Diversification Opportunities for LB Foster and 06051GKL2
Excellent diversification
The 3 months correlation between FSTR and 06051GKL2 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and BAC 3846 08 MAR 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAC 3846 08 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 06051GKL2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAC 3846 08 has no effect on the direction of LB Foster i.e., LB Foster and 06051GKL2 go up and down completely randomly.
Pair Corralation between LB Foster and 06051GKL2
Given the investment horizon of 90 days LB Foster is expected to generate 2.71 times more return on investment than 06051GKL2. However, LB Foster is 2.71 times more volatile than BAC 3846 08 MAR 37. It trades about 0.23 of its potential returns per unit of risk. BAC 3846 08 MAR 37 is currently generating about -0.02 per unit of risk. If you would invest 1,957 in LB Foster on September 12, 2024 and sell it today you would earn a total of 950.00 from holding LB Foster or generate 48.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
LB Foster vs. BAC 3846 08 MAR 37
Performance |
| Timeline |
| LB Foster |
| BAC 3846 08 |
LB Foster and 06051GKL2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and 06051GKL2
The main advantage of trading using opposite LB Foster and 06051GKL2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, 06051GKL2 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 06051GKL2 will offset losses from the drop in 06051GKL2's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| 06051GKL2 vs. AEP TEX INC | 06051GKL2 vs. US BANK NATIONAL | 06051GKL2 vs. Alphabet Inc Class C | 06051GKL2 vs. InMode |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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