Correlation Between Lockheed Martin and Intel Corp

Can any of the company-specific risk be diversified away by investing in both Lockheed Martin and Intel Corp 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 Intel Corp 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 Intel Corp CEDEAR, you can compare the effects of market volatilities on Lockheed Martin and Intel Corp 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 Intel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lockheed Martin and Intel Corp.

Diversification Opportunities for Lockheed Martin and Intel Corp

0.8

Correlation Coefficient

Lockheed Martin  Intel Corp

Very poor diversification

The 3 months correlation between Lockheed and Intel is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lockheed Martin Corp and Intel Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp CEDEAR 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 Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp CEDEAR has no effect on the direction of Lockheed Martin i.e., Lockheed Martin and Intel Corp go up and down completely randomly.

Pair Corralation between Lockheed Martin and Intel Corp

Assuming the 90 days trading horizon Lockheed Martin is expected to generate 3.51 times less return on investment than Intel Corp. But when comparing it to its historical volatility, Lockheed Martin Corp is 2.08 times less risky than Intel Corp. It trades about 0.12 of its potential returns per unit of risk. Intel Corp CEDEAR is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  624,000  in Intel Corp CEDEAR on August 14, 2025 and sell it today you would earn a total of  500,000  from holding Intel Corp CEDEAR or generate 80.13% return on investment over 90 days.

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

Lockheed Martin Corp  vs.  Intel Corp CEDEAR

Lockheed Martin Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lockheed Martin Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Lockheed Martin sustained solid returns over the last few months and may actually be approaching a breakup point.

Intel Corp CEDEAR

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lockheed Martin and Intel Corp

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

The idea behind Lockheed Martin Corp and Intel Corp CEDEAR 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.