BAE Systems Correlations

BAESY Stock

USD 62.44 2.75 4.22%

The current 90-days correlation between BAE Systems PLC and Leonardo Spa is 0.16 (i.e., Average diversification). The correlation of BAE Systems 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 correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

BAE Systems Correlation With Market

Very weak diversification

The correlation between BAE Systems PLC and DJI is 0.44 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BAE Systems PLC and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to BAE Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BAE Systems 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 BAE Systems - 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 BAE Systems PLC to buy it.

Moving against BAE Pink Sheet

0.42	T	ATT Inc Fiscal Year End 22nd of January 2025	Pair Corr
0.4	VZ	Verizon Communications Sell-off Trend	Pair Corr
0.38	DIS	Walt Disney Sell-off Trend	Pair Corr
0.36	HD	Home Depot	Pair Corr
0.32	WMT	Walmart Aggressive Push	Pair Corr

Related Correlations Analysis

	FINMF	QNTQF	FINMY	HII	NOC	LHX	GD	CW	HXL	RNMBF
FINMF		-0.38	0.9	-0.66	-0.61	0.48	-0.37	0.59	0.18	0.69	FINMF
QNTQF	-0.38		-0.3	0.17	0.6	0.38	0.67	0.13	-0.06	-0.67	QNTQF
FINMY	0.9	-0.3		-0.77	-0.59	0.62	-0.31	0.72	0.15	0.69	FINMY
HII	-0.66	0.17	-0.77		0.64	-0.64	0.43	-0.73	0.26	-0.41	HII
NOC	-0.61	0.6	-0.59	0.64		-0.07	0.76	-0.28	0.07	-0.53	NOC
LHX	0.48	0.38	0.62	-0.64	-0.07		0.15	0.93	0.1	0.11	LHX
GD	-0.37	0.67	-0.31	0.43	0.76	0.15		-0.02	0.34	-0.54	GD
CW	0.59	0.13	0.72	-0.73	-0.28	0.93	-0.02		0.15	0.23	CW
HXL	0.18	-0.06	0.15	0.26	0.07	0.1	0.34	0.15		0.08	HXL
RNMBF	0.69	-0.67	0.69	-0.41	-0.53	0.11	-0.54	0.23	0.08		RNMBF
	FINMF	QNTQF	FINMY	HII	NOC	LHX	GD	CW	HXL	RNMBF

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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

CW	+ 0.93	LHX
FINMY	+ 0.9	FINMF
GD	+ 0.76	NOC
CW	+ 0.72	FINMY
RNMBF	+ 0.69	FINMF
RNMBF	+ 0.69	FINMY

High negative correlations

HII	- 0.77	FINMY
CW	- 0.73	HII
RNMBF	- 0.67	QNTQF
HII	- 0.66	FINMF
LHX	- 0.64	HII
NOC	- 0.61	FINMF

Risk-Adjusted Indicators

There is a big difference between BAE Pink Sheet performing well and BAE Systems 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 BAE Systems' 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
FINMF	2.96	0.04	0.03	0.15	3.44	(3.75)	7.30	(5.95)	17.24
QNTQF	0.47	(0.14)	0.00	28.82	0.00	0.00	0.00	(0.17)	17.65
FINMY	1.59	(0.04)	(0.01)	0.09	2.08	(1.76)	3.32	(2.67)	9.51
HII	1.54	(0.69)	0.00	(0.23)	0.00	0.00	2.45	(2.65)	28.74
NOC	0.81	(0.13)	0.00	(0.15)	0.00	0.00	1.62	(1.78)	6.85
LHX	0.97	0.03	(0.02)	0.18	1.28	(1.03)	2.19	(1.78)	8.70
GD	0.93	(0.21)	0.00	(0.05)	0.00	0.00	1.55	(1.51)	10.86
CW	1.23	0.09	0.08	0.19	1.68	(1.38)	2.96	(2.48)	11.02
HXL	1.18	(0.17)	(0.07)	0.01	1.62	(1.14)	2.35	(2.66)	6.19
RNMBF	2.03	0.10	0.03	0.24	2.19	(2.44)	5.96	(4.63)	13.11

Be your own money manager

Our tools can tell you how much better you can do entering a position in BAE Systems 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.

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BAE Systems Corporate Management

Tania Gandamihardja	Group Director	Profile
Julian Cracknell	Chief Officer	Profile
Neils Petersen	Chief Operations	Profile
Caitlin Hayden	Group Director	Profile
Thomas Arseneault	Ex Director	Profile
Rolf Rue	Regional Markets	Profile

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