Correlation Between LB Foster and 29366MAC2
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By analyzing existing cross correlation between LB Foster and ETR 335 15 JUN 52, you can compare the effects of market volatilities on LB Foster and 29366MAC2 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 29366MAC2. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and 29366MAC2.
Diversification Opportunities for LB Foster and 29366MAC2
Very good diversification
The 3 months correlation between FSTR and 29366MAC2 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and ETR 335 15 JUN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETR 335 15 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 29366MAC2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETR 335 15 has no effect on the direction of LB Foster i.e., LB Foster and 29366MAC2 go up and down completely randomly.
Pair Corralation between LB Foster and 29366MAC2
Given the investment horizon of 90 days LB Foster is expected to generate 1.36 times more return on investment than 29366MAC2. However, LB Foster is 1.36 times more volatile than ETR 335 15 JUN 52. It trades about 0.21 of its potential returns per unit of risk. ETR 335 15 JUN 52 is currently generating about 0.07 per unit of risk. If you would invest 1,984 in LB Foster on September 3, 2024 and sell it today you would earn a total of 889.00 from holding LB Foster or generate 44.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.63% |
| Values | Daily Returns |
LB Foster vs. ETR 335 15 JUN 52
Performance |
| Timeline |
| LB Foster |
| ETR 335 15 |
LB Foster and 29366MAC2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and 29366MAC2
The main advantage of trading using opposite LB Foster and 29366MAC2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, 29366MAC2 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 29366MAC2 will offset losses from the drop in 29366MAC2's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| 29366MAC2 vs. Cedar Realty Trust | 29366MAC2 vs. Titan Machinery | 29366MAC2 vs. LB Foster | 29366MAC2 vs. Avis Budget 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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