Correlation Between 842400HM8 and LB Foster
Specify exactly 2 symbols:
By analyzing existing cross correlation between EIX 275 01 FEB 32 and LB Foster, you can compare the effects of market volatilities on 842400HM8 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 842400HM8 with a short position of LB Foster. Check out your portfolio center. Please also check ongoing floating volatility patterns of 842400HM8 and LB Foster.
Diversification Opportunities for 842400HM8 and LB Foster
Excellent diversification
The 3 months correlation between 842400HM8 and FSTR is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding EIX 275 01 FEB 32 and LB Foster in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Foster and 842400HM8 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 EIX 275 01 FEB 32 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 842400HM8 i.e., 842400HM8 and LB Foster go up and down completely randomly.
Pair Corralation between 842400HM8 and LB Foster
Assuming the 90 days trading horizon 842400HM8 is expected to generate 25.34 times less return on investment than LB Foster. But when comparing it to its historical volatility, EIX 275 01 FEB 32 is 3.6 times less risky than LB Foster. It trades about 0.01 of its potential returns per unit of risk. LB Foster is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 948.00 in LB Foster on September 12, 2024 and sell it today you would earn a total of 1,914 from holding LB Foster or generate 201.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.14% |
| Values | Daily Returns |
EIX 275 01 FEB 32 vs. LB Foster
Performance |
| Timeline |
| EIX 275 01 |
| LB Foster |
842400HM8 and LB Foster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 842400HM8 and LB Foster
The main advantage of trading using opposite 842400HM8 and LB Foster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 842400HM8 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.| 842400HM8 vs. LB Foster | 842400HM8 vs. NH Foods Ltd | 842400HM8 vs. Where Food Comes | 842400HM8 vs. Proficient Auto Logistics, |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |