Correlation Between Prog Hldgs and Huntington Ingalls

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Can any of the company-specific risk be diversified away by investing in both Prog Hldgs 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 Prog Hldgs and Huntington Ingalls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prog Hldgs and Huntington Ingalls Industries, you can compare the effects of market volatilities on Prog Hldgs 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 Prog Hldgs with a short position of Huntington Ingalls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prog Hldgs and Huntington Ingalls.

Diversification Opportunities for Prog Hldgs and Huntington Ingalls

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Prog Hldgs and Huntington is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Prog Hldgs and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and Prog Hldgs 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 Prog Hldgs 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 Prog Hldgs i.e., Prog Hldgs and Huntington Ingalls go up and down completely randomly.

Pair Corralation between Prog Hldgs and Huntington Ingalls

Considering the 90-day investment horizon Prog Hldgs is expected to under-perform the Huntington Ingalls. In addition to that, Prog Hldgs is 2.76 times more volatile than Huntington Ingalls Industries. It trades about -0.33 of its total potential returns per unit of risk. Huntington Ingalls Industries is currently generating about -0.1 per unit of volatility. If you would invest  22,748  in Huntington Ingalls Industries on July 3, 2022 and sell it today you would lose (598.00)  from holding Huntington Ingalls Industries or give up 2.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Prog Hldgs  vs.  Huntington Ingalls Industries

 Performance (%) 
       Timeline  
Prog Hldgs 
Prog Hldgs Performance
0 of 100
Over the last 90 days Prog Hldgs has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Prog Hldgs Price Channel

Huntington Ingalls 
Huntington Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Huntington Ingalls Industries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward indicators, Huntington Ingalls is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Huntington Price Channel

Prog Hldgs and Huntington Ingalls Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Prog Hldgs and Huntington Ingalls

The main advantage of trading using opposite Prog Hldgs and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prog Hldgs 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.
Prog Hldgs vs. Amazon Inc
The idea behind Prog Hldgs 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. Amazon Inc
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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