Correlation Between Huntington Ingalls and Intuitive Machines
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Intuitive Machines 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 Intuitive Machines 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 Intuitive Machines, you can compare the effects of market volatilities on Huntington Ingalls and Intuitive Machines 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 Intuitive Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Intuitive Machines.
Diversification Opportunities for Huntington Ingalls and Intuitive Machines
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Huntington and Intuitive is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Intuitive Machines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intuitive Machines 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 Intuitive Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intuitive Machines has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Intuitive Machines go up and down completely randomly.
Pair Corralation between Huntington Ingalls and Intuitive Machines
Considering the 90-day investment horizon Huntington Ingalls Industries is expected to under-perform the Intuitive Machines. But the stock apears to be less risky and, when comparing its historical volatility, Huntington Ingalls Industries is 1.42 times less risky than Intuitive Machines. The stock trades about -0.16 of its potential returns per unit of risk. The Intuitive Machines is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 822.00 in Intuitive Machines on August 28, 2024 and sell it today you would earn a total of 646.00 from holding Intuitive Machines or generate 78.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. Intuitive Machines
Performance |
| Timeline |
| Huntington Ingalls |
| Intuitive Machines |
Huntington Ingalls and Intuitive Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and Intuitive Machines
The main advantage of trading using opposite Huntington Ingalls and Intuitive Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, Intuitive Machines 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 Intuitive Machines will offset losses from the drop in Intuitive Machines' long position.| Huntington Ingalls vs. Sidus Space | Huntington Ingalls vs. Rocket Lab USA | Huntington Ingalls vs. Momentus | Huntington Ingalls vs. Planet Labs PBC |
| Intuitive Machines vs. Sidus Space | Intuitive Machines vs. Rocket Lab USA | Intuitive Machines vs. Momentus | Intuitive Machines vs. Planet Labs PBC |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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