Correlation Between LB Foster and BRISTOL
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By analyzing existing cross correlation between LB Foster and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on LB Foster and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and BRISTOL.
Diversification Opportunities for LB Foster and BRISTOL
Average diversification
The 3 months correlation between FSTR and BRISTOL is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of LB Foster i.e., LB Foster and BRISTOL go up and down completely randomly.
Pair Corralation between LB Foster and BRISTOL
Given the investment horizon of 90 days LB Foster is expected to generate 7.61 times more return on investment than BRISTOL. However, LB Foster is 7.61 times more volatile than BRISTOL MYERS SQUIBB CO. It trades about 0.23 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about -0.01 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 Together |
| Strength | Insignificant |
| Accuracy | 48.44% |
| Values | Daily Returns |
LB Foster vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| LB Foster |
| BRISTOL MYERS SQUIBB |
LB Foster and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and BRISTOL
The main advantage of trading using opposite LB Foster and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| BRISTOL vs. Mink Therapeutics | BRISTOL vs. Verde Clean Fuels | BRISTOL vs. Universal | BRISTOL vs. Northstar Clean Technologies |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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