Correlation Between Loar Holdings and Huntington Ingalls
Can any of the company-specific risk be diversified away by investing in both Loar Holdings 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 Loar Holdings and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loar Holdings and Huntington Ingalls Industries, you can compare the effects of market volatilities on Loar Holdings 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 Loar Holdings with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loar Holdings and Huntington Ingalls.
Diversification Opportunities for Loar Holdings and Huntington Ingalls
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Loar and Huntington is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Loar Holdings and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and Loar 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 Loar Holdings 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 Loar Holdings i.e., Loar Holdings and Huntington Ingalls go up and down completely randomly.
Pair Corralation between Loar Holdings and Huntington Ingalls
Given the investment horizon of 90 days Loar Holdings is expected to under-perform the Huntington Ingalls. In addition to that, Loar Holdings is 1.24 times more volatile than Huntington Ingalls Industries. It trades about -0.15 of its total potential returns per unit of risk. Huntington Ingalls Industries is currently generating about 0.18 per unit of volatility. If you would invest 22,538 in Huntington Ingalls Industries on June 6, 2025 and sell it today you would earn a total of 4,460 from holding Huntington Ingalls Industries or generate 19.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Loar Holdings vs. Huntington Ingalls Industries
Performance |
| Timeline |
| Loar Holdings |
| Huntington Ingalls |
Loar Holdings and Huntington Ingalls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loar Holdings and Huntington Ingalls
The main advantage of trading using opposite Loar Holdings and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loar Holdings 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.| Loar Holdings vs. Griffon | Loar Holdings vs. Genuine Parts Co | Loar Holdings vs. Arrow Electronics | Loar Holdings vs. Austin Gold Corp |
| Huntington Ingalls vs. Lockheed Martin | Huntington Ingalls vs. General Dynamics | Huntington Ingalls vs. Raytheon Technologies Corp | Huntington Ingalls vs. L3Harris Technologies |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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