Correlation Between WESCO International and Huntington Ingalls
Can any of the company-specific risk be diversified away by investing in both WESCO International 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 WESCO International and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESCO International and Huntington Ingalls Industries, you can compare the effects of market volatilities on WESCO International 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 WESCO International with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESCO International and Huntington Ingalls.
Diversification Opportunities for WESCO International and Huntington Ingalls
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WESCO and Huntington is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding WESCO International and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and WESCO International 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 WESCO International 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 WESCO International i.e., WESCO International and Huntington Ingalls go up and down completely randomly.
Pair Corralation between WESCO International and Huntington Ingalls
Considering the 90-day investment horizon WESCO International is expected to generate 1.47 times more return on investment than Huntington Ingalls. However, WESCO International is 1.47 times more volatile than Huntington Ingalls Industries. It trades about 0.11 of its potential returns per unit of risk. Huntington Ingalls Industries is currently generating about 0.14 per unit of risk. If you would invest 22,505 in WESCO International on August 28, 2025 and sell it today you would earn a total of 3,508 from holding WESCO International or generate 15.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESCO International vs. Huntington Ingalls Industries
Performance |
| Timeline |
| WESCO International |
| Huntington Ingalls |
WESCO International and Huntington Ingalls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESCO International and Huntington Ingalls
The main advantage of trading using opposite WESCO International and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESCO International 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.| WESCO International vs. Medical Connections Holdings | WESCO International vs. Zijin Mining Group | WESCO International vs. Perseus Mining Limited | WESCO International vs. STRATEC Biomedical AG |
| Huntington Ingalls vs. Check Point Software | Huntington Ingalls vs. Xtreme Motorsports International | Huntington Ingalls vs. IBITX Software | Huntington Ingalls vs. Prism 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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