Correlation Between Lockheed Martin and Asuntosalkku Oyj
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Asuntosalkku Oyj 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 Asuntosalkku Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Asuntosalkku Oyj, you can compare the effects of market volatilities on Lockheed Martin and Asuntosalkku Oyj 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 Asuntosalkku Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Asuntosalkku Oyj.
Diversification Opportunities for Lockheed Martin and Asuntosalkku Oyj
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lockheed and Asuntosalkku is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Asuntosalkku Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asuntosalkku Oyj 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 Asuntosalkku Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asuntosalkku Oyj has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Asuntosalkku Oyj go up and down completely randomly.
Pair Corralation between Lockheed Martin and Asuntosalkku Oyj
Considering the 90-day investment horizon Lockheed Martin is expected to under-perform the Asuntosalkku Oyj. But the stock apears to be less risky and, when comparing its historical volatility, Lockheed Martin is 1.18 times less risky than Asuntosalkku Oyj. The stock trades about -0.19 of its potential returns per unit of risk. The Asuntosalkku Oyj is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 7,950 in Asuntosalkku Oyj on August 24, 2024 and sell it today you would lose (200.00) from holding Asuntosalkku Oyj or give up 2.52% 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. Asuntosalkku Oyj
Performance |
| Timeline |
| Lockheed Martin |
| Asuntosalkku Oyj |
Lockheed Martin and Asuntosalkku Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Asuntosalkku Oyj
The main advantage of trading using opposite Lockheed Martin and Asuntosalkku Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Asuntosalkku Oyj 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 Asuntosalkku Oyj will offset losses from the drop in Asuntosalkku Oyj's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Asuntosalkku Oyj vs. Nightingale Health Oyj | Asuntosalkku Oyj vs. Aiforia Technologies Oyj | Asuntosalkku Oyj vs. SSH Communications Security | Asuntosalkku Oyj vs. Alandsbanken Abp A |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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