Correlation Between Triumph and Huntington Ingalls
Can any of the company-specific risk be diversified away by investing in both Triumph 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 Triumph and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Group and Huntington Ingalls Industries, you can compare the effects of market volatilities on Triumph 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 Triumph with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph and Huntington Ingalls.
Diversification Opportunities for Triumph and Huntington Ingalls
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Triumph and Huntington is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Group and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and Triumph 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 Triumph Group 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 Triumph i.e., Triumph and Huntington Ingalls go up and down completely randomly.
Pair Corralation between Triumph and Huntington Ingalls
If you would invest 2.50 in Triumph Group on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Triumph Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Triumph Group vs. Huntington Ingalls Industries
Performance |
| Timeline |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Huntington Ingalls |
Triumph and Huntington Ingalls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph and Huntington Ingalls
The main advantage of trading using opposite Triumph and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph 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.| Triumph vs. Addus HomeCare | Triumph vs. SunLink Health Systems | Triumph vs. Sonida Senior Living | Triumph vs. Boston Properties |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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