Correlation Between Radiant Logistics and LB Foster
Can any of the company-specific risk be diversified away by investing in both Radiant Logistics and LB Foster 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 Radiant Logistics and LB Foster into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radiant Logistics and LB Foster, you can compare the effects of market volatilities on Radiant Logistics 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 Radiant Logistics with a short position of LB Foster. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radiant Logistics and LB Foster.
Diversification Opportunities for Radiant Logistics and LB Foster
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Radiant and FSTR is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Radiant Logistics and LB Foster in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Foster and Radiant Logistics 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 Radiant Logistics 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 Radiant Logistics i.e., Radiant Logistics and LB Foster go up and down completely randomly.
Pair Corralation between Radiant Logistics and LB Foster
Given the investment horizon of 90 days Radiant Logistics is expected to generate 80.94 times less return on investment than LB Foster. But when comparing it to its historical volatility, Radiant Logistics is 1.11 times less risky than LB Foster. It trades about 0.0 of its potential returns per unit of risk. LB Foster is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,309 in LB Foster on August 17, 2025 and sell it today you would earn a total of 367.00 from holding LB Foster or generate 15.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radiant Logistics vs. LB Foster
Performance |
| Timeline |
| Radiant Logistics |
| LB Foster |
Radiant Logistics and LB Foster Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radiant Logistics and LB Foster
The main advantage of trading using opposite Radiant Logistics and LB Foster positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radiant Logistics 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.| Radiant Logistics vs. Omega Flex | Radiant Logistics vs. CompX International | Radiant Logistics vs. Quad Graphics | Radiant Logistics vs. NL Industries |
| LB Foster vs. Park Ohio Holdings | LB Foster vs. NL Industries | LB Foster vs. Quad Graphics | LB Foster vs. Radiant Logistics |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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