Correlation Between Lockheed Martin and CI Games
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and CI Games 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 CI Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and CI Games SA, you can compare the effects of market volatilities on Lockheed Martin and CI Games 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 CI Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and CI Games.
Diversification Opportunities for Lockheed Martin and CI Games
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lockheed and CIG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and CI Games SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Games SA 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 CI Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Games SA has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and CI Games go up and down completely randomly.
Pair Corralation between Lockheed Martin and CI Games
Considering the 90-day investment horizon Lockheed Martin is expected to generate 1.59 times more return on investment than CI Games. However, Lockheed Martin is 1.59 times more volatile than CI Games SA. It trades about -0.19 of its potential returns per unit of risk. CI Games SA is currently generating about -0.66 per unit of risk. If you would invest 57,110 in Lockheed Martin on August 24, 2024 and sell it today you would lose (2,909) from holding Lockheed Martin or give up 5.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Lockheed Martin vs. CI Games SA
Performance |
| Timeline |
| Lockheed Martin |
| CI Games SA |
Lockheed Martin and CI Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and CI Games
The main advantage of trading using opposite Lockheed Martin and CI Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, CI Games 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 CI Games will offset losses from the drop in CI Games' long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| CI Games vs. Saule Technologies SA | CI Games vs. Datawalk SA | CI Games vs. Quantum Software SA | CI Games vs. Cloud Technologies SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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