Correlation Between Cablevision Holding and Lockheed Martin

Can any of the company-specific risk be diversified away by investing in both Cablevision Holding 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 Cablevision Holding and Lockheed Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cablevision Holding SA and Lockheed Martin Corp, you can compare the effects of market volatilities on Cablevision Holding 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 Cablevision Holding with a short position of Lockheed Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cablevision Holding and Lockheed Martin.

Diversification Opportunities for Cablevision Holding and Lockheed Martin

-0.14

Correlation Coefficient

Cablevision Holding  Lockheed Martin

Good diversification

The 3 months correlation between Cablevision and Lockheed is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cablevision Holding SA and Lockheed Martin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lockheed Martin Corp and Cablevision Holding 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 Cablevision Holding SA 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 Corp has no effect on the direction of Cablevision Holding i.e., Cablevision Holding and Lockheed Martin go up and down completely randomly.

Pair Corralation between Cablevision Holding and Lockheed Martin

Assuming the 90 days trading horizon Cablevision Holding SA is expected to generate 0.85 times more return on investment than Lockheed Martin. However, Cablevision Holding SA is 1.17 times less risky than Lockheed Martin. It trades about 0.04 of its potential returns per unit of risk. Lockheed Martin Corp is currently generating about -0.03 per unit of risk. If you would invest  622,000  in Cablevision Holding SA on April 24, 2025 and sell it today you would earn a total of  22,000  from holding Cablevision Holding SA or generate 3.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cablevision Holding SA  vs.  Lockheed Martin Corp

Cablevision Holding

Risk-Adjusted Performance

Weak

Over the last 90 days Cablevision Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Cablevision Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lockheed Martin Corp

Risk-Adjusted Performance

Modest

Over the last 90 days Lockheed Martin Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Lockheed Martin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cablevision Holding and Lockheed Martin

The main advantage of trading using opposite Cablevision Holding and Lockheed Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cablevision Holding 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.

The idea behind Cablevision Holding SA and Lockheed Martin Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.