Northrop Grumman Correlations
| NOC Stock | USD 452.05 1.70 0.38% |
The correlation of Northrop Grumman is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Northrop Grumman moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Northrop Grumman moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Significant diversification
The correlation between Northrop Grumman and NYA is 0.04 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northrop Grumman and NYA in the same portfolio, assuming nothing else is changed.
Northrop |
The ability to find closely correlated positions to Northrop Grumman could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Northrop Grumman when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Northrop Grumman - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Northrop Grumman to buy it.
Moving against Northrop Stock
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Northrop Stock performing well and Northrop Grumman Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Northrop Grumman's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| CW | 0.69 | 0.14 | 0.16 | 0.26 | 0.57 | 1.51 | 4.29 | |||
| HXL | 1.33 | (0.26) | 0.00 | (0.16) | 0.00 | 2.06 | 15.71 | |||
| KAMN | 3.01 | 1.38 | 1.74 | 0.55 | 0.00 | 0.75 | 101.73 | |||
| DCO | 1.48 | (0.01) | 0.01 | 0.04 | 1.74 | 2.48 | 18.67 | |||
| WWD | 1.01 | 0.04 | 0.03 | 0.08 | 1.18 | 2.29 | 6.93 | |||
| AIR | 1.29 | 0.12 | 0.04 | (0.52) | 1.62 | 2.78 | 12.62 | |||
| MOG-A | 1.12 | 0.06 | 0.06 | 0.09 | 1.13 | 2.50 | 5.69 | |||
| PKE | 1.46 | 0.03 | 0.02 | 0.08 | 1.89 | 2.65 | 8.81 | |||
| NPK | 1.03 | (0.05) | 0.00 | (0.04) | 0.00 | 2.39 | 6.03 | |||
| ISSC | 1.23 | (0.34) | 0.00 | (2.84) | 0.00 | 2.11 | 10.48 |
Be your own money manager
Our tools can tell you how much better you can do entering a position in Northrop Grumman without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.Did you try this?
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Northrop Grumman Corporate Directors
Northrop Grumman corporate directors refer to members of a Northrop Grumman board of directors. The board of directors generally takes responsibility for the Northrop Grumman's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of Northrop Grumman's board members must vote for the resolution. The Northrop Grumman board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.| Thomas Schoewe | Independent Director | Profile | |
| Karl Krapek | Independent Director | Profile | |
| Graham Robinson | Independent Director | Profile | |
| Donald Felsinger | Lead Independent Director | Profile |
Already Invested in Northrop Grumman?
The danger of trading Northrop Grumman is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Northrop Grumman is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Northrop Grumman. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Northrop Grumman is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Northrop Grumman offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Northrop Grumman's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Northrop Grumman Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Northrop Grumman Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in persons. For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Complementary Tools for Northrop Stock analysis
When running Northrop Grumman's price analysis, check to measure Northrop Grumman's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Northrop Grumman is operating at the current time. Most of Northrop Grumman's value examination focuses on studying past and present price action to predict the probability of Northrop Grumman's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Northrop Grumman's price. Additionally, you may evaluate how the addition of Northrop Grumman to your portfolios can decrease your overall portfolio volatility.
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Is Northrop Grumman's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Northrop Grumman. If investors know Northrop will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Northrop Grumman listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.049 | Dividend Share 7.34 | Earnings Share 13.51 | Revenue Per Share 259.34 | Quarterly Revenue Growth 0.06 |
The market value of Northrop Grumman is measured differently than its book value, which is the value of Northrop that is recorded on the company's balance sheet. Investors also form their own opinion of Northrop Grumman's value that differs from its market value or its book value, called intrinsic value, which is Northrop Grumman's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Northrop Grumman's market value can be influenced by many factors that don't directly affect Northrop Grumman's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Northrop Grumman's value and its price as these two are different measures arrived at by different means. Investors typically determine if Northrop Grumman is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Northrop Grumman's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.