Correlation Between LB Foster and 87264ABR5
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By analyzing existing cross correlation between LB Foster and US87264ABR59, you can compare the effects of market volatilities on LB Foster and 87264ABR5 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 87264ABR5. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and 87264ABR5.
Diversification Opportunities for LB Foster and 87264ABR5
Excellent diversification
The 3 months correlation between FSTR and 87264ABR5 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and US87264ABR59 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US87264ABR59 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 87264ABR5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US87264ABR59 has no effect on the direction of LB Foster i.e., LB Foster and 87264ABR5 go up and down completely randomly.
Pair Corralation between LB Foster and 87264ABR5
Given the investment horizon of 90 days LB Foster is expected to generate 1.96 times more return on investment than 87264ABR5. However, LB Foster is 1.96 times more volatile than US87264ABR59. It trades about 0.32 of its potential returns per unit of risk. US87264ABR59 is currently generating about -0.2 per unit of risk. If you would invest 2,336 in LB Foster on September 13, 2024 and sell it today you would earn a total of 491.00 from holding LB Foster or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
LB Foster vs. US87264ABR59
Performance |
| Timeline |
| LB Foster |
| US87264ABR59 |
LB Foster and 87264ABR5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and 87264ABR5
The main advantage of trading using opposite LB Foster and 87264ABR5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, 87264ABR5 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 87264ABR5 will offset losses from the drop in 87264ABR5's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| 87264ABR5 vs. Meiwu Technology Co | 87264ABR5 vs. Western Asset Investment | 87264ABR5 vs. CapitaLand Investment Limited | 87264ABR5 vs. LB Foster |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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