Correlation Between ENELIM and LB Foster
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By analyzing existing cross correlation between ENELIM 775 14 OCT 52 and LB Foster, you can compare the effects of market volatilities on ENELIM and LB Foster 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 ENELIM with a short position of LB Foster. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENELIM and LB Foster.
Diversification Opportunities for ENELIM and LB Foster
Excellent diversification
The 3 months correlation between ENELIM and FSTR is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding ENELIM 775 14 OCT 52 and LB Foster in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Foster and ENELIM 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 ENELIM 775 14 OCT 52 are associated (or correlated) with LB Foster. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LB Foster has no effect on the direction of ENELIM i.e., ENELIM and LB Foster go up and down completely randomly.
Pair Corralation between ENELIM and LB Foster
Assuming the 90 days trading horizon ENELIM 775 14 OCT 52 is expected to under-perform the LB Foster. But the bond apears to be less risky and, when comparing its historical volatility, ENELIM 775 14 OCT 52 is 3.83 times less risky than LB Foster. The bond trades about -0.04 of its potential returns per unit of risk. The LB Foster is currently generating about 0.21 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 82.81% |
| Values | Daily Returns |
ENELIM 775 14 OCT 52 vs. LB Foster
Performance |
| Timeline |
| ENELIM 775 14 |
| LB Foster |
ENELIM and LB Foster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENELIM and LB Foster
The main advantage of trading using opposite ENELIM and LB Foster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENELIM position performs unexpectedly, LB Foster 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 LB Foster will offset losses from the drop in LB Foster's long position.| ENELIM vs. LB Foster | ENELIM vs. Saia Inc | ENELIM vs. Western Asset Investment | ENELIM vs. Nexstar Broadcasting Group |
| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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