Correlation Between Lockheed Martin and Nara Mold
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Nara Mold 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 Nara Mold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Nara Mold Die, you can compare the effects of market volatilities on Lockheed Martin and Nara Mold 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 Nara Mold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Nara Mold.
Diversification Opportunities for Lockheed Martin and Nara Mold
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lockheed and Nara is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Nara Mold Die in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nara Mold Die 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 are associated (or correlated) with Nara Mold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nara Mold Die has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Nara Mold go up and down completely randomly.
Pair Corralation between Lockheed Martin and Nara Mold
Considering the 90-day investment horizon Lockheed Martin is expected to generate 0.33 times more return on investment than Nara Mold. However, Lockheed Martin is 3.03 times less risky than Nara Mold. It trades about -0.2 of its potential returns per unit of risk. Nara Mold Die is currently generating about -0.15 per unit of risk. If you would invest 55,517 in Lockheed Martin on August 27, 2024 and sell it today you would lose (3,328) from holding Lockheed Martin or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. Nara Mold Die
Performance |
| Timeline |
| Lockheed Martin |
| Nara Mold Die |
Lockheed Martin and Nara Mold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Nara Mold
The main advantage of trading using opposite Lockheed Martin and Nara Mold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Nara Mold 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 Nara Mold will offset losses from the drop in Nara Mold's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Nara Mold vs. Gyeongnam Steel Co | Nara Mold vs. Haitai Confectionery Foods | Nara Mold vs. Shinsegae Food | Nara Mold vs. Seoul Broadcasting System |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |