Correlation Between Lockheed Martin and QXO,
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and QXO, 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 QXO, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and QXO, Inc, you can compare the effects of market volatilities on Lockheed Martin and QXO, 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 QXO,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and QXO,.
Diversification Opportunities for Lockheed Martin and QXO,
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lockheed and QXO, is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and QXO, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QXO, Inc 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 QXO,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QXO, Inc has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and QXO, go up and down completely randomly.
Pair Corralation between Lockheed Martin and QXO,
Considering the 90-day investment horizon Lockheed Martin is expected to under-perform the QXO,. But the stock apears to be less risky and, when comparing its historical volatility, Lockheed Martin is 1.75 times less risky than QXO,. The stock trades about -0.14 of its potential returns per unit of risk. The QXO, Inc is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,509 in QXO, Inc on August 26, 2024 and sell it today you would earn a total of 195.00 from holding QXO, Inc or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. QXO, Inc
Performance |
| Timeline |
| Lockheed Martin |
| QXO, Inc |
Lockheed Martin and QXO, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and QXO,
The main advantage of trading using opposite Lockheed Martin and QXO, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, QXO, 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 QXO, will offset losses from the drop in QXO,'s long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |