Correlation Between Lockheed Martin and AirNet Technology
Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and AirNet Technology 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 AirNet Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lockheed Martin and AirNet Technology, you can compare the effects of market volatilities on Lockheed Martin and AirNet Technology 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 AirNet Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and AirNet Technology.
Diversification Opportunities for Lockheed Martin and AirNet Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lockheed and AirNet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin and AirNet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirNet Technology 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 AirNet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirNet Technology has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and AirNet Technology go up and down completely randomly.
Pair Corralation between Lockheed Martin and AirNet Technology
If you would invest 44,599 in Lockheed Martin on January 26, 2024 and sell it today you would earn a total of 1,315 from holding Lockheed Martin or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lockheed Martin vs. AirNet Technology
Performance |
| Timeline |
| Lockheed Martin |
| AirNet Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lockheed Martin and AirNet Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lockheed Martin and AirNet Technology
The main advantage of trading using opposite Lockheed Martin and AirNet Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lockheed Martin position performs unexpectedly, AirNet Technology 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 AirNet Technology will offset losses from the drop in AirNet Technology's long position.| Lockheed Martin vs. Northrop Grumman | Lockheed Martin vs. General Dynamics | Lockheed Martin vs. L3Harris Technologies | Lockheed Martin vs. The Boeing |
| AirNet Technology vs. NETGEAR | AirNet Technology vs. KVH Industries | AirNet Technology vs. Delek Drilling | AirNet Technology vs. Noble plc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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