Correlation Between Lockheed Martin and Textainer Group
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Textainer Group 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 Textainer Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Textainer Group Holdings, you can compare the effects of market volatilities on Lockheed Martin and Textainer Group 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 Textainer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Textainer Group.
Diversification Opportunities for Lockheed Martin and Textainer Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lockheed and Textainer is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Textainer Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textainer Group Holdings 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 Textainer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textainer Group Holdings has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Textainer Group go up and down completely randomly.
Pair Corralation between Lockheed Martin and Textainer Group
If you would invest 4,091 in Textainer Group Holdings on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Textainer Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lockheed Martin vs. Textainer Group Holdings
Performance |
| Timeline |
| Lockheed Martin |
| Textainer Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lockheed Martin and Textainer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Textainer Group
The main advantage of trading using opposite Lockheed Martin and Textainer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Textainer Group 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 Textainer Group will offset losses from the drop in Textainer Group's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Textainer Group vs. Ryder System | Textainer Group vs. Triton International Limited | Textainer Group vs. Air Lease | Textainer Group vs. Herc Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |