Correlation Between LB Foster and SOCGEN
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By analyzing existing cross correlation between LB Foster and SOCGEN 1792 09 JUN 27, you can compare the effects of market volatilities on LB Foster and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and SOCGEN.
Diversification Opportunities for LB Foster and SOCGEN
Very good diversification
The 3 months correlation between FSTR and SOCGEN is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and SOCGEN 1792 09 JUN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 1792 09 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 1792 09 has no effect on the direction of LB Foster i.e., LB Foster and SOCGEN go up and down completely randomly.
Pair Corralation between LB Foster and SOCGEN
Given the investment horizon of 90 days LB Foster is expected to generate 1.38 times more return on investment than SOCGEN. However, LB Foster is 1.38 times more volatile than SOCGEN 1792 09 JUN 27. It trades about 0.51 of its potential returns per unit of risk. SOCGEN 1792 09 JUN 27 is currently generating about -0.37 per unit of risk. If you would invest 1,911 in LB Foster on September 3, 2024 and sell it today you would earn a total of 962.00 from holding LB Foster or generate 50.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.0% |
| Values | Daily Returns |
LB Foster vs. SOCGEN 1792 09 JUN 27
Performance |
| Timeline |
| LB Foster |
| SOCGEN 1792 09 |
LB Foster and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and SOCGEN
The main advantage of trading using opposite LB Foster and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| SOCGEN vs. LB Foster | SOCGEN vs. Zhihu Inc ADR | SOCGEN vs. Yuexiu Transport Infrastructure | SOCGEN vs. Afya |
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 Stocks Directory module to find actively traded stocks across global markets.
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