Correlation Between LOCKHEED and Live Ventures
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By analyzing existing cross correlation between LOCKHEED MARTIN P and Live Ventures, you can compare the effects of market volatilities on LOCKHEED and Live Ventures 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 with a short position of Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOCKHEED and Live Ventures.
Diversification Opportunities for LOCKHEED and Live Ventures
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between LOCKHEED and Live is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding LOCKHEED MARTIN P and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures and LOCKHEED 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 P are associated (or correlated) with Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of LOCKHEED i.e., LOCKHEED and Live Ventures go up and down completely randomly.
Pair Corralation between LOCKHEED and Live Ventures
Assuming the 90 days trading horizon LOCKHEED MARTIN P is expected to generate 0.33 times more return on investment than Live Ventures. However, LOCKHEED MARTIN P is 3.0 times less risky than Live Ventures. It trades about -0.09 of its potential returns per unit of risk. Live Ventures is currently generating about -0.2 per unit of risk. If you would invest 10,120 in LOCKHEED MARTIN P on September 15, 2024 and sell it today you would lose (544.00) from holding LOCKHEED MARTIN P or give up 5.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 67.19% |
Values | Daily Returns |
LOCKHEED MARTIN P vs. Live Ventures
Performance |
Timeline |
LOCKHEED MARTIN P |
Live Ventures |
LOCKHEED and Live Ventures Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LOCKHEED and Live Ventures
The main advantage of trading using opposite LOCKHEED and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOCKHEED position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.LOCKHEED vs. Live Ventures | LOCKHEED vs. Oasis Hotel Resort | LOCKHEED vs. Sweetgreen | LOCKHEED vs. Dine Brands Global |
Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Kingfisher plc | Live Ventures vs. Haverty Furniture Companies |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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