Correlation Between Lockheed Martin and Memscap Regpt
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Memscap Regpt 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 Memscap Regpt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Memscap Regpt, you can compare the effects of market volatilities on Lockheed Martin and Memscap Regpt 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 Memscap Regpt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Memscap Regpt.
Diversification Opportunities for Lockheed Martin and Memscap Regpt
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lockheed and Memscap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Memscap Regpt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Memscap Regpt 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 Memscap Regpt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Memscap Regpt has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Memscap Regpt go up and down completely randomly.
Pair Corralation between Lockheed Martin and Memscap Regpt
Considering the 90-day investment horizon Lockheed Martin is expected to generate 4.64 times less return on investment than Memscap Regpt. But when comparing it to its historical volatility, Lockheed Martin is 3.6 times less risky than Memscap Regpt. It trades about 0.04 of its potential returns per unit of risk. Memscap Regpt is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 172.00 in Memscap Regpt on August 27, 2024 and sell it today you would earn a total of 166.00 from holding Memscap Regpt or generate 96.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.48% |
| Values | Daily Returns |
Lockheed Martin vs. Memscap Regpt
Performance |
| Timeline |
| Lockheed Martin |
| Memscap Regpt |
Lockheed Martin and Memscap Regpt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Memscap Regpt
The main advantage of trading using opposite Lockheed Martin and Memscap Regpt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Memscap Regpt 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 Memscap Regpt will offset losses from the drop in Memscap Regpt's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Memscap Regpt vs. Sartorius Stedim Biotech | Memscap Regpt vs. Lectra SA | Memscap Regpt vs. Teleperformance SE | Memscap Regpt vs. Trigano 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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