Correlation Between Huntington Ingalls and PureTech Health
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and PureTech Health 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 PureTech Health 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 PureTech Health plc, you can compare the effects of market volatilities on Huntington Ingalls and PureTech Health 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 PureTech Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and PureTech Health.
Diversification Opportunities for Huntington Ingalls and PureTech Health
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huntington and PureTech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and PureTech Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PureTech Health plc 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 PureTech Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PureTech Health plc has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and PureTech Health go up and down completely randomly.
Pair Corralation between Huntington Ingalls and PureTech Health
Considering the 90-day investment horizon Huntington Ingalls Industries is expected to generate 0.52 times more return on investment than PureTech Health. However, Huntington Ingalls Industries is 1.91 times less risky than PureTech Health. It trades about 0.16 of its potential returns per unit of risk. PureTech Health plc is currently generating about 0.05 per unit of risk. If you would invest 26,853 in Huntington Ingalls Industries on August 31, 2025 and sell it today you would earn a total of 4,509 from holding Huntington Ingalls Industries or generate 16.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. PureTech Health plc
Performance |
| Timeline |
| Huntington Ingalls |
| PureTech Health plc |
Huntington Ingalls and PureTech Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and PureTech Health
The main advantage of trading using opposite Huntington Ingalls and PureTech Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, PureTech Health 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 PureTech Health will offset losses from the drop in PureTech Health's long position.| Huntington Ingalls vs. Knight Transportation | Huntington Ingalls vs. American Transportation Holdings | Huntington Ingalls vs. ANTA Sports Products | Huntington Ingalls vs. JD Sports Fashion |
| PureTech Health vs. Columbia Sportswear | PureTech Health vs. Academy Sports Outdoors | PureTech Health vs. Canlan Ice Sports | PureTech Health vs. Kingdee International Software |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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