Correlation Between Lockheed Martin and Banco Macro

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

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

Diversification Opportunities for Lockheed Martin and Banco Macro

-0.42

Correlation Coefficient

Lockheed Martin  Banco Macro

Very good diversification

The 3 months correlation between Lockheed and Banco is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin Corp and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA 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 Corp are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Banco Macro go up and down completely randomly.

Pair Corralation between Lockheed Martin and Banco Macro

Assuming the 90 days trading horizon Lockheed Martin Corp is expected to generate 0.97 times more return on investment than Banco Macro. However, Lockheed Martin Corp is 1.03 times less risky than Banco Macro. It trades about -0.03 of its potential returns per unit of risk. Banco Macro SA is currently generating about -0.15 per unit of risk. If you would invest  2,867,500  in Lockheed Martin Corp on April 25, 2025 and sell it today you would lose (202,500) from holding Lockheed Martin Corp or give up 7.06% of portfolio value over 90 days.

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

Lockheed Martin Corp  vs.  Banco Macro SA

Lockheed Martin Corp

Risk-Adjusted Performance

Very Weak

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.

Banco Macro SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Banco Macro SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lockheed Martin and Banco Macro

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

The idea behind Lockheed Martin Corp and Banco Macro SA 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.