Correlation Between Huntington Ingalls and RBC Bearings
Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and RBC Bearings 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 RBC Bearings 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 RBC Bearings Incorporated, you can compare the effects of market volatilities on Huntington Ingalls and RBC Bearings 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 RBC Bearings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and RBC Bearings.
Diversification Opportunities for Huntington Ingalls and RBC Bearings
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Huntington and RBC is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and RBC Bearings Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Bearings 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 RBC Bearings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Bearings has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and RBC Bearings go up and down completely randomly.
Pair Corralation between Huntington Ingalls and RBC Bearings
Considering the 90-day investment horizon Huntington Ingalls Industries is expected to generate 1.0 times more return on investment than RBC Bearings. However, Huntington Ingalls is 1.0 times more volatile than RBC Bearings Incorporated. It trades about 0.16 of its potential returns per unit of risk. RBC Bearings Incorporated is currently generating about 0.1 per unit of risk. If you would invest 26,578 in Huntington Ingalls Industries on August 20, 2025 and sell it today you would earn a total of 4,396 from holding Huntington Ingalls Industries or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Ingalls Industries vs. RBC Bearings Incorporated
Performance |
| Timeline |
| Huntington Ingalls |
| RBC Bearings |
Huntington Ingalls and RBC Bearings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Ingalls and RBC Bearings
The main advantage of trading using opposite Huntington Ingalls and RBC Bearings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, RBC Bearings 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 RBC Bearings will offset losses from the drop in RBC Bearings' long position.| Huntington Ingalls vs. Textron | Huntington Ingalls vs. Builders FirstSource | Huntington Ingalls vs. Topbuild Corp | Huntington Ingalls vs. Lincoln Electric Holdings |
| RBC Bearings vs. Lincoln Electric Holdings | RBC Bearings vs. Allegheny Technologies Incorporated | RBC Bearings vs. Graco Inc | RBC Bearings vs. Avery Dennison Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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