Correlation Between LB Foster and WALMART
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By analyzing existing cross correlation between LB Foster and WALMART INC, you can compare the effects of market volatilities on LB Foster and WALMART 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 WALMART. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and WALMART.
Diversification Opportunities for LB Foster and WALMART
Pay attention - limited upside
The 3 months correlation between FSTR and WALMART is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and WALMART INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALMART INC 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 WALMART. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALMART INC has no effect on the direction of LB Foster i.e., LB Foster and WALMART go up and down completely randomly.
Pair Corralation between LB Foster and WALMART
Given the investment horizon of 90 days LB Foster is expected to generate 7.59 times more return on investment than WALMART. However, LB Foster is 7.59 times more volatile than WALMART INC. It trades about 0.1 of its potential returns per unit of risk. WALMART INC is currently generating about 0.0 per unit of risk. If you would invest 925.00 in LB Foster on September 2, 2024 and sell it today you would earn a total of 1,948 from holding LB Foster or generate 210.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 93.55% |
| Values | Daily Returns |
LB Foster vs. WALMART INC
Performance |
| Timeline |
| LB Foster |
| WALMART INC |
LB Foster and WALMART Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and WALMART
The main advantage of trading using opposite LB Foster and WALMART positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, WALMART 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 WALMART will offset losses from the drop in WALMART's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| WALMART vs. AEP TEX INC | WALMART vs. US BANK NATIONAL | WALMART vs. Bank of America | WALMART vs. GE Aerospace |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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