Correlation Between Lockheed Martin and 437076CK6
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By analyzing existing cross correlation between Lockheed Martin and HD 275 15 SEP 51, you can compare the effects of market volatilities on Lockheed Martin and 437076CK6 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 437076CK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and 437076CK6.
Diversification Opportunities for Lockheed Martin and 437076CK6
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lockheed and 437076CK6 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and HD 275 15 SEP 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HD 275 15 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 437076CK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HD 275 15 has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and 437076CK6 go up and down completely randomly.
Pair Corralation between Lockheed Martin and 437076CK6
Considering the 90-day investment horizon Lockheed Martin is expected to under-perform the 437076CK6. But the stock apears to be less risky and, when comparing its historical volatility, Lockheed Martin is 1.84 times less risky than 437076CK6. The stock trades about -0.19 of its potential returns per unit of risk. The HD 275 15 SEP 51 is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6,365 in HD 275 15 SEP 51 on August 24, 2024 and sell it today you would earn a total of 427.00 from holding HD 275 15 SEP 51 or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lockheed Martin vs. HD 275 15 SEP 51
Performance |
| Timeline |
| Lockheed Martin |
| HD 275 15 |
Lockheed Martin and 437076CK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and 437076CK6
The main advantage of trading using opposite Lockheed Martin and 437076CK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, 437076CK6 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 437076CK6 will offset losses from the drop in 437076CK6's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| 437076CK6 vs. AEP TEX INC | 437076CK6 vs. US BANK NATIONAL | 437076CK6 vs. Alphabet Inc Class C | 437076CK6 vs. Axon Enterprise |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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