Correlation Between KWE Old and Huntington Ingalls
Can any of the company-specific risk be diversified away by investing in both KWE Old 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 KWE Old and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KWE Old and Huntington Ingalls Industries, you can compare the effects of market volatilities on KWE Old 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 KWE Old with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of KWE Old and Huntington Ingalls.
Diversification Opportunities for KWE Old and Huntington Ingalls
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KWE and Huntington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KWE Old and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and KWE Old 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 KWE Old 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 KWE Old i.e., KWE Old and Huntington Ingalls go up and down completely randomly.
Pair Corralation between KWE Old and Huntington Ingalls
If you would invest 28,722 in Huntington Ingalls Industries on October 5, 2025 and sell it today you would earn a total of 6,253 from holding Huntington Ingalls Industries or generate 21.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.61% |
| Values | Daily Returns |
KWE Old vs. Huntington Ingalls Industries
Performance |
| Timeline |
| KWE Old |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Huntington Ingalls |
KWE Old and Huntington Ingalls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KWE Old and Huntington Ingalls
The main advantage of trading using opposite KWE Old and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KWE Old 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.The idea behind KWE Old and Huntington Ingalls Industries pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Huntington Ingalls vs. Textron | Huntington Ingalls vs. Builders FirstSource | Huntington Ingalls vs. Topbuild Corp | Huntington Ingalls vs. Lincoln Electric Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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