Correlation Between Leidos Holdings and HP
Can any of the company-specific risk be diversified away by investing in both Leidos Holdings and HP 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 Leidos Holdings and HP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leidos Holdings and HP Inc, you can compare the effects of market volatilities on Leidos Holdings and HP 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 Leidos Holdings with a short position of HP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leidos Holdings and HP.
Diversification Opportunities for Leidos Holdings and HP
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Leidos and HP is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Leidos Holdings and HP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HP Inc and Leidos Holdings 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 Leidos Holdings are associated (or correlated) with HP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HP Inc has no effect on the direction of Leidos Holdings i.e., Leidos Holdings and HP go up and down completely randomly.
Pair Corralation between Leidos Holdings and HP
Given the investment horizon of 90 days Leidos Holdings is expected to generate 0.6 times more return on investment than HP. However, Leidos Holdings is 1.66 times less risky than HP. It trades about 0.07 of its potential returns per unit of risk. HP Inc is currently generating about -0.09 per unit of risk. If you would invest 18,053 in Leidos Holdings on August 29, 2025 and sell it today you would earn a total of 983.00 from holding Leidos Holdings or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leidos Holdings vs. HP Inc
Performance |
| Timeline |
| Leidos Holdings |
| HP Inc |
Leidos Holdings and HP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leidos Holdings and HP
The main advantage of trading using opposite Leidos Holdings and HP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leidos Holdings position performs unexpectedly, HP 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 HP will offset losses from the drop in HP's long position.| Leidos Holdings vs. TFS Financial | Leidos Holdings vs. Net Lease Office | Leidos Holdings vs. Bankwell Financial Group | Leidos Holdings vs. Cadence Bank |
| HP vs. Valmie Resources | HP vs. Ninestar Corp | HP vs. Dawning Information Industry | HP vs. Compal Electronics GDR |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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