Correlation Between Lockheed Martin and Yatas Yatak
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Yatas Yatak 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 Yatas Yatak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and Yatas Yatak ve, you can compare the effects of market volatilities on Lockheed Martin and Yatas Yatak 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 Yatas Yatak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Yatas Yatak.
Diversification Opportunities for Lockheed Martin and Yatas Yatak
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lockheed and Yatas is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and Yatas Yatak ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yatas Yatak ve 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 Yatas Yatak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yatas Yatak ve has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Yatas Yatak go up and down completely randomly.
Pair Corralation between Lockheed Martin and Yatas Yatak
Considering the 90-day investment horizon Lockheed Martin is expected to under-perform the Yatas Yatak. But the stock apears to be less risky and, when comparing its historical volatility, Lockheed Martin is 1.64 times less risky than Yatas Yatak. The stock trades about -0.19 of its potential returns per unit of risk. The Yatas Yatak ve is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,410 in Yatas Yatak ve on August 24, 2024 and sell it today you would earn a total of 180.00 from holding Yatas Yatak ve or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lockheed Martin vs. Yatas Yatak ve
Performance |
| Timeline |
| Lockheed Martin |
| Yatas Yatak ve |
Lockheed Martin and Yatas Yatak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and Yatas Yatak
The main advantage of trading using opposite Lockheed Martin and Yatas Yatak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, Yatas Yatak 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 Yatas Yatak will offset losses from the drop in Yatas Yatak's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| Yatas Yatak vs. Mavi Giyim Sanayi | Yatas Yatak vs. BIM Birlesik Magazalar | Yatas Yatak vs. Tofas Turk Otomobil | Yatas Yatak vs. Tekfen Holding AS |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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