Correlation Between Soken Chemical and Lockheed Martin
Can any of the company-specific risk be diversified away by investing in both Soken Chemical and Lockheed Martin 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 Soken Chemical and Lockheed Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soken Chemical Engineering and Lockheed Martin, you can compare the effects of market volatilities on Soken Chemical and Lockheed Martin 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 Soken Chemical with a short position of Lockheed Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soken Chemical and Lockheed Martin.
Diversification Opportunities for Soken Chemical and Lockheed Martin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Soken and Lockheed is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Soken Chemical Engineering and Lockheed Martin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin and Soken Chemical 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 Soken Chemical Engineering are associated (or correlated) with Lockheed Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lockheed Martin has no effect on the direction of Soken Chemical i.e., Soken Chemical and Lockheed Martin go up and down completely randomly.
Pair Corralation between Soken Chemical and Lockheed Martin
If you would invest 1,266 in Soken Chemical Engineering on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Soken Chemical Engineering or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Soken Chemical Engineering vs. Lockheed Martin
Performance |
| Timeline |
| Soken Chemical Engin |
| Lockheed Martin |
Soken Chemical and Lockheed Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Soken Chemical and Lockheed Martin
The main advantage of trading using opposite Soken Chemical and Lockheed Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soken Chemical position performs unexpectedly, Lockheed Martin 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 Lockheed Martin will offset losses from the drop in Lockheed Martin's long position.| Soken Chemical vs. ATOSS SOFTWARE | Soken Chemical vs. Goodyear Tire Rubber | Soken Chemical vs. Tencent Music Entertainment | Soken Chemical vs. Warner Music Group |
| Lockheed Martin vs. Haier Smart Home | Lockheed Martin vs. Taylor Morrison Home | Lockheed Martin vs. UNITED RENTALS | Lockheed Martin vs. Alfa Financial Software |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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