Correlation Between Lockheed Martin and GameOn Entertainment
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and GameOn Entertainment 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 GameOn Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and GameOn Entertainment Technologies, you can compare the effects of market volatilities on Lockheed Martin and GameOn Entertainment 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 GameOn Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and GameOn Entertainment.
Diversification Opportunities for Lockheed Martin and GameOn Entertainment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lockheed and GameOn is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and GameOn Entertainment Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameOn Entertainment 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 GameOn Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameOn Entertainment has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and GameOn Entertainment go up and down completely randomly.
Pair Corralation between Lockheed Martin and GameOn Entertainment
Considering the 90-day investment horizon Lockheed Martin is expected to generate 0.08 times more return on investment than GameOn Entertainment. However, Lockheed Martin is 12.97 times less risky than GameOn Entertainment. It trades about 0.13 of its potential returns per unit of risk. GameOn Entertainment Technologies is currently generating about -0.04 per unit of risk. If you would invest 45,288 in Lockheed Martin on August 24, 2024 and sell it today you would earn a total of 8,913 from holding Lockheed Martin or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. GameOn Entertainment Technolog
Performance |
| Timeline |
| Lockheed Martin |
| GameOn Entertainment |
Lockheed Martin and GameOn Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and GameOn Entertainment
The main advantage of trading using opposite Lockheed Martin and GameOn Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, GameOn Entertainment 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 GameOn Entertainment will offset losses from the drop in GameOn Entertainment's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| GameOn Entertainment vs. Playtika Holding Corp | GameOn Entertainment vs. Square Enix Holdings | GameOn Entertainment vs. Capcom Co | GameOn Entertainment vs. Nexters Warrant |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |