Correlation Between Eve Holding and Huntington Ingalls
Can any of the company-specific risk be diversified away by investing in both Eve Holding and Huntington Ingalls 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 Eve Holding and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eve Holding and Huntington Ingalls Industries, you can compare the effects of market volatilities on Eve Holding and Huntington Ingalls 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 Eve Holding with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eve Holding and Huntington Ingalls.
Diversification Opportunities for Eve Holding and Huntington Ingalls
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eve and Huntington is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eve Holding and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and Eve Holding 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 Eve Holding are associated (or correlated) with Huntington Ingalls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Ingalls has no effect on the direction of Eve Holding i.e., Eve Holding and Huntington Ingalls go up and down completely randomly.
Pair Corralation between Eve Holding and Huntington Ingalls
Given the investment horizon of 90 days Eve Holding is expected to under-perform the Huntington Ingalls. In addition to that, Eve Holding is 1.88 times more volatile than Huntington Ingalls Industries. It trades about -0.03 of its total potential returns per unit of risk. Huntington Ingalls Industries is currently generating about 0.0 per unit of volatility. If you would invest 21,390 in Huntington Ingalls Industries on August 27, 2024 and sell it today you would lose (1,495) from holding Huntington Ingalls Industries or give up 6.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eve Holding vs. Huntington Ingalls Industries
Performance |
| Timeline |
| Eve Holding |
| Huntington Ingalls |
Eve Holding and Huntington Ingalls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eve Holding and Huntington Ingalls
The main advantage of trading using opposite Eve Holding and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eve Holding position performs unexpectedly, Huntington Ingalls 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 Huntington Ingalls will offset losses from the drop in Huntington Ingalls' long position.| Eve Holding vs. Heico | Eve Holding vs. Mercury Systems | Eve Holding vs. AeroVironment | Eve Holding vs. Howmet Aerospace |
| Huntington Ingalls vs. Lockheed Martin | Huntington Ingalls vs. General Dynamics | Huntington Ingalls vs. Raytheon Technologies Corp | Huntington Ingalls vs. L3Harris Technologies |
Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |