Correlation Between LB Foster and Aerofoam Metals
Can any of the company-specific risk be diversified away by investing in both LB Foster and Aerofoam Metals at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LB Foster and Aerofoam Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Aerofoam Metals, you can compare the effects of market volatilities on LB Foster and Aerofoam Metals 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 Aerofoam Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Aerofoam Metals.
Diversification Opportunities for LB Foster and Aerofoam Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FSTR and Aerofoam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Aerofoam Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerofoam Metals 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 Aerofoam Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerofoam Metals has no effect on the direction of LB Foster i.e., LB Foster and Aerofoam Metals go up and down completely randomly.
Pair Corralation between LB Foster and Aerofoam Metals
If you would invest 1,944 in LB Foster on September 25, 2024 and sell it today you would earn a total of 680.00 from holding LB Foster or generate 34.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
LB Foster vs. Aerofoam Metals
Performance |
Timeline |
LB Foster |
Aerofoam Metals |
LB Foster and Aerofoam Metals Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LB Foster and Aerofoam Metals
The main advantage of trading using opposite LB Foster and Aerofoam Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Aerofoam Metals 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 Aerofoam Metals will offset losses from the drop in Aerofoam Metals' long position.LB Foster vs. Steel Partners Holdings | LB Foster vs. Brookfield Business Partners | LB Foster vs. Griffon | LB Foster vs. Tejon Ranch Co |
Aerofoam Metals vs. Topbuild Corp | Aerofoam Metals vs. RBC Bearings Incorporated | Aerofoam Metals vs. ReTo Eco Solutions | Aerofoam Metals vs. Park Ohio Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |