Correlation Between Huntington Ingalls and Aramark Holdings
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Aramark Holdings 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 Aramark Holdings 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 Aramark Holdings, you can compare the effects of market volatilities on Huntington Ingalls and Aramark Holdings 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 Aramark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Aramark Holdings.
Diversification Opportunities for Huntington Ingalls and Aramark Holdings
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huntington and Aramark is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Aramark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aramark Holdings 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 Aramark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aramark Holdings has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Aramark Holdings go up and down completely randomly.
Pair Corralation between Huntington Ingalls and Aramark Holdings
Considering the 90-day investment horizon Huntington Ingalls Industries is expected to generate 1.37 times more return on investment than Aramark Holdings. However, Huntington Ingalls is 1.37 times more volatile than Aramark Holdings. It trades about 0.17 of its potential returns per unit of risk. Aramark Holdings is currently generating about -0.04 per unit of risk. If you would invest 26,629 in Huntington Ingalls Industries on August 16, 2025 and sell it today you would earn a total of 4,768 from holding Huntington Ingalls Industries or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. Aramark Holdings
Performance |
| Timeline |
| Huntington Ingalls |
| Aramark Holdings |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Huntington Ingalls and Aramark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and Aramark Holdings
The main advantage of trading using opposite Huntington Ingalls and Aramark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, Aramark Holdings 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 Aramark Holdings will offset losses from the drop in Aramark Holdings' long position.| Huntington Ingalls vs. Textron | Huntington Ingalls vs. Builders FirstSource | Huntington Ingalls vs. Topbuild Corp | Huntington Ingalls vs. Lincoln Electric Holdings |
| Aramark Holdings vs. Donaldson | Aramark Holdings vs. Pool Corporation | Aramark Holdings vs. Applied Industrial Technologies | Aramark Holdings vs. U Haul Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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