Correlation Between Martin Marietta and Lumen Technologies,

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

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

Diversification Opportunities for Martin Marietta and Lumen Technologies,

0.11

Correlation Coefficient

Martin Marietta  Lumen Technologies,

Average diversification

The 3 months correlation between Martin and Lumen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials, and Lumen Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lumen Technologies, and Martin Marietta 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 Martin Marietta Materials, are associated (or correlated) with Lumen Technologies,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lumen Technologies, has no effect on the direction of Martin Marietta i.e., Martin Marietta and Lumen Technologies, go up and down completely randomly.

Pair Corralation between Martin Marietta and Lumen Technologies,

Assuming the 90 days trading horizon Martin Marietta is expected to generate 7.68 times less return on investment than Lumen Technologies,. But when comparing it to its historical volatility, Martin Marietta Materials, is 2.6 times less risky than Lumen Technologies,. It trades about 0.04 of its potential returns per unit of risk. Lumen Technologies, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,900  in Lumen Technologies, on April 24, 2025 and sell it today you would earn a total of  572.00  from holding Lumen Technologies, or generate 30.11% return on investment over 90 days.

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

Martin Marietta Materials,  vs.  Lumen Technologies,

Martin Marietta Mate

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Marietta Materials, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Martin Marietta is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lumen Technologies,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumen Technologies, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Lumen Technologies, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Martin Marietta and Lumen Technologies,

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

The idea behind Martin Marietta Materials, and Lumen Technologies, 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.