Correlation Between L3Harris Technologies, and Under Armour

Can any of the company-specific risk be diversified away by investing in both L3Harris Technologies, and Under Armour 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 L3Harris Technologies, and Under Armour into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between L3Harris Technologies, and Under Armour, you can compare the effects of market volatilities on L3Harris Technologies, and Under Armour 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 L3Harris Technologies, with a short position of Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of L3Harris Technologies, and Under Armour.

Diversification Opportunities for L3Harris Technologies, and Under Armour

0.0

Correlation Coefficient

L3Harris Technologies,  Under Armour

Pay attention - limited upside

The 3 months correlation between L3Harris and Under is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding L3Harris Technologies, and Under Armour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour and L3Harris Technologies, 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 L3Harris Technologies, are associated (or correlated) with Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour has no effect on the direction of L3Harris Technologies, i.e., L3Harris Technologies, and Under Armour go up and down completely randomly.

Pair Corralation between L3Harris Technologies, and Under Armour

If you would invest  29,892  in L3Harris Technologies, on April 24, 2025 and sell it today you would earn a total of  7,145  from holding L3Harris Technologies, or generate 23.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

L3Harris Technologies,  vs.  Under Armour

L3Harris Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in L3Harris Technologies, are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, L3Harris Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

Under Armour

Risk-Adjusted Performance

OK

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

Pair Trading with L3Harris Technologies, and Under Armour

The main advantage of trading using opposite L3Harris Technologies, and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if L3Harris Technologies, position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.

The idea behind L3Harris Technologies, and Under Armour 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.