Correlation Between EAT WELL and Lockheed Martin
Can any of the company-specific risk be diversified away by investing in both EAT WELL and Lockheed Martin 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 EAT WELL and Lockheed Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and Lockheed Martin, you can compare the effects of market volatilities on EAT WELL and Lockheed Martin 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 EAT WELL with a short position of Lockheed Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and Lockheed Martin.
Diversification Opportunities for EAT WELL and Lockheed Martin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and Lockheed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and Lockheed Martin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin and EAT WELL 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 EAT WELL INVESTMENT are associated (or correlated) with Lockheed Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lockheed Martin has no effect on the direction of EAT WELL i.e., EAT WELL and Lockheed Martin go up and down completely randomly.
Pair Corralation between EAT WELL and Lockheed Martin
If you would invest 11.00 in EAT WELL INVESTMENT on September 13, 2024 and sell it today you would earn a total of 0.00 from holding EAT WELL INVESTMENT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. Lockheed Martin
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| Lockheed Martin |
EAT WELL and Lockheed Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and Lockheed Martin
The main advantage of trading using opposite EAT WELL and Lockheed Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL position performs unexpectedly, Lockheed Martin 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 Lockheed Martin will offset losses from the drop in Lockheed Martin's long position.| EAT WELL vs. Ameriprise Financial | EAT WELL vs. Ares Management Corp | EAT WELL vs. Superior Plus Corp | EAT WELL vs. SIVERS SEMICONDUCTORS AB |
| Lockheed Martin vs. ECHO INVESTMENT ZY | Lockheed Martin vs. EAT WELL INVESTMENT | Lockheed Martin vs. MGIC INVESTMENT | Lockheed Martin vs. WisdomTree Investments |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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