Correlation Between Lockheed Martin and YS Biopharma
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and YS Biopharma 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 YS Biopharma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and YS Biopharma Co,, you can compare the effects of market volatilities on Lockheed Martin and YS Biopharma 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 YS Biopharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and YS Biopharma.
Diversification Opportunities for Lockheed Martin and YS Biopharma
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lockheed and YS Biopharma is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and YS Biopharma Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YS Biopharma Co, 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 YS Biopharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YS Biopharma Co, has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and YS Biopharma go up and down completely randomly.
Pair Corralation between Lockheed Martin and YS Biopharma
If you would invest 48.00 in YS Biopharma Co, on August 24, 2024 and sell it today you would earn a total of 0.00 from holding YS Biopharma Co, or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Lockheed Martin vs. YS Biopharma Co,
Performance |
| Timeline |
| Lockheed Martin |
| YS Biopharma Co, |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lockheed Martin and YS Biopharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and YS Biopharma
The main advantage of trading using opposite Lockheed Martin and YS Biopharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, YS Biopharma 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 YS Biopharma will offset losses from the drop in YS Biopharma's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| YS Biopharma vs. Revelation Biosciences | YS Biopharma vs. Cardio Diagnostics Holdings | YS Biopharma vs. Biodexa Pharmaceticals | YS Biopharma vs. ZyVersa Therapeutics |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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