Correlation Between LB Foster and Umbra Companies
Can any of the company-specific risk be diversified away by investing in both LB Foster and Umbra Companies 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 Umbra Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LB Foster and Umbra Companies, you can compare the effects of market volatilities on LB Foster and Umbra Companies 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 Umbra Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of LB Foster and Umbra Companies.
Diversification Opportunities for LB Foster and Umbra Companies
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FSTR and Umbra is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding LB Foster and Umbra Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Umbra Companies 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 Umbra Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Umbra Companies has no effect on the direction of LB Foster i.e., LB Foster and Umbra Companies go up and down completely randomly.
Pair Corralation between LB Foster and Umbra Companies
Given the investment horizon of 90 days LB Foster is expected to generate 0.08 times more return on investment than Umbra Companies. However, LB Foster is 12.72 times less risky than Umbra Companies. It trades about -0.03 of its potential returns per unit of risk. Umbra Companies is currently generating about -0.25 per unit of risk. If you would invest 2,735 in LB Foster on August 16, 2025 and sell it today you would lose (59.00) from holding LB Foster or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
LB Foster vs. Umbra Companies
Performance |
| Timeline |
| LB Foster |
| Umbra Companies |
LB Foster and Umbra Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LB Foster and Umbra Companies
The main advantage of trading using opposite LB Foster and Umbra Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LB Foster position performs unexpectedly, Umbra Companies 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 Umbra Companies will offset losses from the drop in Umbra Companies' long position.| LB Foster vs. Park Ohio Holdings | LB Foster vs. NL Industries | LB Foster vs. Quad Graphics | LB Foster vs. Radiant Logistics |
| Umbra Companies vs. Next Hydrogen Solutions | Umbra Companies vs. Natures Miracle Holding | Umbra Companies vs. China High Speed | Umbra Companies vs. Titan Logix Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |