Correlation Between Lockheed Martin and Kioson Komersial
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Kioson Komersial 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 Kioson Komersial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Kioson Komersial Indonesia, you can compare the effects of market volatilities on Lockheed Martin and Kioson Komersial 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 Kioson Komersial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Kioson Komersial.
Diversification Opportunities for Lockheed Martin and Kioson Komersial
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lockheed and Kioson is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Kioson Komersial Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kioson Komersial Ind 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 Kioson Komersial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kioson Komersial Ind has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Kioson Komersial go up and down completely randomly.
Pair Corralation between Lockheed Martin and Kioson Komersial
Considering the 90-day investment horizon Lockheed Martin is expected to under-perform the Kioson Komersial. In addition to that, Lockheed Martin is 2.42 times more volatile than Kioson Komersial Indonesia. It trades about -0.2 of its total potential returns per unit of risk. Kioson Komersial Indonesia is currently generating about -0.32 per unit of volatility. If you would invest 5,200 in Kioson Komersial Indonesia on August 28, 2024 and sell it today you would lose (200.00) from holding Kioson Komersial Indonesia or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. Kioson Komersial Indonesia
Performance |
| Timeline |
| Lockheed Martin |
| Kioson Komersial Ind |
Lockheed Martin and Kioson Komersial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Kioson Komersial
The main advantage of trading using opposite Lockheed Martin and Kioson Komersial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Kioson Komersial 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 Kioson Komersial will offset losses from the drop in Kioson Komersial's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Kioson Komersial vs. Multipolar Tbk | Kioson Komersial vs. Astra Graphia Tbk | Kioson Komersial vs. Matahari Putra Prima | Kioson Komersial vs. Ramayana Lestari Sentosa |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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