Correlation Between GLOBUS MEDICAL and Lockheed Martin
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL 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 GLOBUS MEDICAL and Lockheed Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Lockheed Martin, you can compare the effects of market volatilities on GLOBUS MEDICAL 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 GLOBUS MEDICAL with a short position of Lockheed Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and Lockheed Martin.
Diversification Opportunities for GLOBUS MEDICAL and Lockheed Martin
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GLOBUS and Lockheed is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A and Lockheed Martin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin and GLOBUS MEDICAL 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 GLOBUS MEDICAL A 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 GLOBUS MEDICAL i.e., GLOBUS MEDICAL and Lockheed Martin go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and Lockheed Martin
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 1.15 times more return on investment than Lockheed Martin. However, GLOBUS MEDICAL is 1.15 times more volatile than Lockheed Martin. It trades about 0.29 of its potential returns per unit of risk. Lockheed Martin is currently generating about 0.09 per unit of risk. If you would invest 8,050 in GLOBUS MEDICAL A on October 25, 2024 and sell it today you would earn a total of 750.00 from holding GLOBUS MEDICAL A or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. Lockheed Martin
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Lockheed Martin |
GLOBUS MEDICAL and Lockheed Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL and Lockheed Martin
The main advantage of trading using opposite GLOBUS MEDICAL and Lockheed Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL 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.| GLOBUS MEDICAL vs. HK Electric Investments | GLOBUS MEDICAL vs. NEWELL RUBBERMAID | GLOBUS MEDICAL vs. APPLIED MATERIALS | GLOBUS MEDICAL vs. REINET INVESTMENTS SCA |
| Lockheed Martin vs. CARSALESCOM | Lockheed Martin vs. Caseys General Stores | Lockheed Martin vs. AEON STORES | Lockheed Martin vs. 24SEVENOFFICE GROUP AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |