A carregar...
Publicação
Pairs trade and equity valuation - lockheed Martin and Raytheon technologies corporation
| Nome: | Descrição: | Tamanho: | Formato: | |
|---|---|---|---|---|
| 2 MB | Adobe PDF |
Autores
Orientador(es)
Resumo(s)
This paper conducts a company analysis and equity valuation of Lockheed Martin and the RTX
Corporation, incorporating current financials, forecasts, and market scenarios. The objectives are
twofold: to establish a probability-weighted price target for each company and to devise pairs trade
strategies leveraging stock price differentials. Findings suggest, as of 22nd of September 2023, the
market is undervaluing LMT and accurately valuing RTX. Testing multiple pairs trade strategies
suggests that a scenario adjusted pair trade of going long in LMT and shorting RTX, used as a
defensive strategy, can minimize market risk, and potentially generate alpha.
Descrição
Palavras-chave
Pairs trade Equity valuation Scenario analysis Dcf Multiples Volatility Trend following Scenarios Pairs trade