Correlation Between LB Foster and Yoshitsu
Can any of the company-specific risk be diversified away by investing in both LB Foster and Yoshitsu 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 Yoshitsu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Yoshitsu Co Ltd, you can compare the effects of market volatilities on LB Foster and Yoshitsu 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 Yoshitsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Yoshitsu.
Diversification Opportunities for LB Foster and Yoshitsu
Significant diversification
The 3 months correlation between FSTR and Yoshitsu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Yoshitsu Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoshitsu 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 Yoshitsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoshitsu has no effect on the direction of LB Foster i.e., LB Foster and Yoshitsu go up and down completely randomly.
Pair Corralation between LB Foster and Yoshitsu
Given the investment horizon of 90 days LB Foster is expected to generate 1.06 times more return on investment than Yoshitsu. However, LB Foster is 1.06 times more volatile than Yoshitsu Co Ltd. It trades about 0.19 of its potential returns per unit of risk. Yoshitsu Co Ltd is currently generating about -0.03 per unit of risk. If you would invest 1,923 in LB Foster on June 3, 2025 and sell it today you would earn a total of 680.00 from holding LB Foster or generate 35.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LB Foster vs. Yoshitsu Co Ltd
Performance |
| Timeline |
| LB Foster |
| Yoshitsu |
LB Foster and Yoshitsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and Yoshitsu
The main advantage of trading using opposite LB Foster and Yoshitsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Yoshitsu 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 Yoshitsu will offset losses from the drop in Yoshitsu's long position.| LB Foster vs. Trinity Industries | LB Foster vs. Freightcar America | LB Foster vs. Westinghouse Air Brake | LB Foster vs. Norfolk Southern |
| Yoshitsu vs. Beiersdorf AG ADR | Yoshitsu vs. Tantech Holdings | Yoshitsu vs. Virgin Group Acquisition | Yoshitsu vs. Yatsen Holding |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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