Correlation Between Huntington Ingalls and Kaman
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Kaman 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 Kaman 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 Kaman, you can compare the effects of market volatilities on Huntington Ingalls and Kaman 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 Kaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Kaman.
Diversification Opportunities for Huntington Ingalls and Kaman
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huntington and Kaman is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Kaman in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaman 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 Kaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaman has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Kaman go up and down completely randomly.
Pair Corralation between Huntington Ingalls and Kaman
If you would invest 2,402 in Kaman on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Kaman or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. Kaman
Performance |
| Timeline |
| Huntington Ingalls |
| Kaman |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Huntington Ingalls and Kaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and Kaman
The main advantage of trading using opposite Huntington Ingalls and Kaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, Kaman 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 Kaman will offset losses from the drop in Kaman's long position.| Huntington Ingalls vs. Lockheed Martin | Huntington Ingalls vs. General Dynamics | Huntington Ingalls vs. Raytheon Technologies Corp | Huntington Ingalls vs. L3Harris Technologies |
| Kaman vs. Ducommun Incorporated | Kaman vs. Innovative Solutions and | Kaman vs. National Presto Industries | Kaman vs. Astronics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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