Correlation Between Lockheed Martin and Enel Generacion
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Enel Generacion 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 Lockheed Martin and Enel Generacion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin Corp and Enel Generacion Costanera, you can compare the effects of market volatilities on Lockheed Martin and Enel Generacion 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 Lockheed Martin with a short position of Enel Generacion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Enel Generacion.
Diversification Opportunities for Lockheed Martin and Enel Generacion
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lockheed and Enel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin Corp and Enel Generacion Costanera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Generacion Costanera and Lockheed Martin 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 Lockheed Martin Corp are associated (or correlated) with Enel Generacion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Generacion Costanera has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Enel Generacion go up and down completely randomly.
Pair Corralation between Lockheed Martin and Enel Generacion
Assuming the 90 days trading horizon Lockheed Martin Corp is expected to generate 0.83 times more return on investment than Enel Generacion. However, Lockheed Martin Corp is 1.2 times less risky than Enel Generacion. It trades about 0.22 of its potential returns per unit of risk. Enel Generacion Costanera is currently generating about 0.04 per unit of risk. If you would invest 3,704,000 in Lockheed Martin Corp on November 3, 2025 and sell it today you would earn a total of 1,046,000 from holding Lockheed Martin Corp or generate 28.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin Corp vs. Enel Generacion Costanera
Performance |
| Timeline |
| Lockheed Martin Corp |
| Enel Generacion Costanera |
Lockheed Martin and Enel Generacion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Enel Generacion
The main advantage of trading using opposite Lockheed Martin and Enel Generacion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Enel Generacion 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 Enel Generacion will offset losses from the drop in Enel Generacion's long position.| Lockheed Martin vs. Transportadora de Gas | Lockheed Martin vs. Verizon Communications | Lockheed Martin vs. Compania de Transporte | Lockheed Martin vs. Agrometal SAI |
| Enel Generacion vs. Agrometal SAI | Enel Generacion vs. Compania de Transporte | Enel Generacion vs. Home Depot CEDEAR | Enel Generacion vs. Harmony Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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