| FOR Stock | | | USD 19.53 0.19 0.96% |
The current 90-days correlation between Forestar Group and Landsea Homes Corp is 0.3 (i.e., Weak diversification). The correlation of Forestar is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Forestar Correlation With Market
Poor diversification
The correlation between Forestar Group and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Forestar Group and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Forestar Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in persons.