Northrop Grumman Correlations

NOC Stock

USD 461.01 11.07 2.46%

The current 90-days correlation between Northrop Grumman and Raytheon Technologies Corp is 0.49 (i.e., Very weak diversification). The correlation of Northrop Grumman is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Northrop Grumman Correlation With Market

Significant diversification

The correlation between Northrop Grumman and DJI is 0.07 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Northrop Grumman and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Northrop Grumman. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.

For information on how to trade Northrop Stock refer to our How to Trade Northrop Stock guide.

Moving together with Northrop Stock

0.7	CW	Curtiss Wright	Pair Corr
0.76	GD	General Dynamics	Pair Corr
0.65	DCO	Ducommun Incorporated	Pair Corr
0.86	DRS	Leonardo DRS, Common	Pair Corr
0.72	HII	Huntington Ingalls	Pair Corr
0.71	LHX	L3Harris Technologies	Pair Corr
0.71	LMT	Lockheed Martin	Pair Corr
0.71	PKE	Park Electrochemical	Pair Corr
0.67	TXT	Textron	Pair Corr

Moving against Northrop Stock

0.65	EH	Ehang Holdings	Pair Corr
0.53	CAE	CAE Inc	Pair Corr
0.5	BA-PA	Boeing	Pair Corr
0.49	BA	Boeing	Pair Corr
0.32	EVEX	Eve Holding	Pair Corr
0.49	TGI	Triumph Group	Pair Corr
0.46	NPK	National Presto Indu	Pair Corr
0.35	MRCY	Mercury Systems	Pair Corr
0.31	SHMDW	SCHMID Group NV	Pair Corr

Related Correlations Analysis

	RTX	GD	BA	LHX	LMT	HII	CW	HXL
RTX		-0.35	0.4	-0.28	-0.5	-0.28	-0.34	0.44	RTX
GD	-0.35		-0.84	0.94	0.95	0.67	0.78	-0.32	GD
BA	0.4	-0.84		-0.91	-0.85	-0.44	-0.52	0.55	BA
LHX	-0.28	0.94	-0.91		0.93	0.54	0.7	-0.4	LHX
LMT	-0.5	0.95	-0.85	0.93		0.67	0.78	-0.38	LMT
HII	-0.28	0.67	-0.44	0.54	0.67		0.64	0.1	HII
CW	-0.34	0.78	-0.52	0.7	0.78	0.64		0.05	CW
HXL	0.44	-0.32	0.55	-0.4	-0.38	0.1	0.05		HXL
	RTX	GD	BA	LHX	LMT	HII	CW	HXL

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

LMT	+ 0.95	GD
LHX	+ 0.94	GD
LMT	+ 0.93	LHX
CW	+ 0.78	GD
CW	+ 0.78	LMT
CW	+ 0.7	LHX

High negative correlations

LHX	- 0.91	BA
LMT	- 0.85	BA
BA	- 0.84	GD
CW	- 0.52	BA
LMT	- 0.5	RTX
HII	- 0.44	BA

Risk-Adjusted Indicators

There is a big difference between Northrop Stock performing well and Northrop Grumman Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Northrop Grumman's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
RTX	1.01	0.10	0.08	0.17	1.18	(1.09)	2.29	(2.51)	6.57
GD	0.92	(0.20)	0.00	(0.44)	0.00	0.00	1.48	(2.20)	6.10
BA	1.34	0.33	0.22	0.61	1.14	(1.51)	3.22	(2.31)	7.39
LHX	1.03	(0.28)	0.00	(0.81)	0.00	0.00	2.06	(2.60)	6.75
LMT	1.05	(0.24)	0.00	(0.88)	0.00	0.00	1.86	(2.65)	12.44
HII	1.62	(0.13)	0.00	(0.26)	0.00	0.00	3.19	(3.51)	21.51
CW	1.45	(0.16)	0.00	(0.18)	0.00	0.00	2.55	(4.36)	16.04
HXL	1.27	0.08	0.05	0.10	1.58	(1.36)	2.81	(3.12)	7.60

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC