Correlation Between Lockheed Martin and Sobr Safe
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Sobr Safe 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 Sobr Safe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Sobr Safe, you can compare the effects of market volatilities on Lockheed Martin and Sobr Safe 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 Sobr Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Sobr Safe.
Diversification Opportunities for Lockheed Martin and Sobr Safe
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lockheed and Sobr is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Sobr Safe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobr Safe 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 Sobr Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobr Safe has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Sobr Safe go up and down completely randomly.
Pair Corralation between Lockheed Martin and Sobr Safe
Considering the 90-day investment horizon Lockheed Martin is expected to generate 0.18 times more return on investment than Sobr Safe. However, Lockheed Martin is 5.59 times less risky than Sobr Safe. It trades about 0.0 of its potential returns per unit of risk. Sobr Safe is currently generating about -0.03 per unit of risk. If you would invest 48,091 in Lockheed Martin on January 14, 2025 and sell it today you would lose (557.00) from holding Lockheed Martin or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. Sobr Safe
Performance |
| Timeline |
| Lockheed Martin |
| Sobr Safe |
Lockheed Martin and Sobr Safe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Sobr Safe
The main advantage of trading using opposite Lockheed Martin and Sobr Safe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Sobr Safe 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 Sobr Safe will offset losses from the drop in Sobr Safe's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Sobr Safe vs. Mind Technology | Sobr Safe vs. SaverOne 2014 Ltd | Sobr Safe vs. SaverOne 2014 Ltd | Sobr Safe vs. Fortive Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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