Correlation Between Huntington Ingalls and Eve Holding
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Eve Holding 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 Huntington Ingalls and Eve Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Ingalls Industries and Eve Holding, you can compare the effects of market volatilities on Huntington Ingalls and Eve Holding 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 Huntington Ingalls with a short position of Eve Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Eve Holding.
Diversification Opportunities for Huntington Ingalls and Eve Holding
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huntington and Eve is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Eve Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eve Holding and Huntington Ingalls 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 Huntington Ingalls Industries are associated (or correlated) with Eve Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eve Holding has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Eve Holding go up and down completely randomly.
Pair Corralation between Huntington Ingalls and Eve Holding
Considering the 90-day investment horizon Huntington Ingalls Industries is expected to under-perform the Eve Holding. In addition to that, Huntington Ingalls is 1.57 times more volatile than Eve Holding. It trades about -0.16 of its total potential returns per unit of risk. Eve Holding is currently generating about 0.0 per unit of volatility. If you would invest 339.00 in Eve Holding on August 27, 2024 and sell it today you would lose (4.00) from holding Eve Holding or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. Eve Holding
Performance |
| Timeline |
| Huntington Ingalls |
| Eve Holding |
Huntington Ingalls and Eve Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and Eve Holding
The main advantage of trading using opposite Huntington Ingalls and Eve Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, Eve Holding 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 Eve Holding will offset losses from the drop in Eve Holding's long position.| Huntington Ingalls vs. Lockheed Martin | Huntington Ingalls vs. General Dynamics | Huntington Ingalls vs. Raytheon Technologies Corp | Huntington Ingalls vs. L3Harris Technologies |
| Eve Holding vs. Heico | Eve Holding vs. Mercury Systems | Eve Holding vs. AeroVironment | Eve Holding vs. Howmet Aerospace |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Transaction History View history of all your transactions and understand their impact on performance |