Correlation Between Huntington Ingalls and Jacobs Solutions

Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Jacobs Solutions 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 Huntington Ingalls and Jacobs Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Huntington Ingalls Industries and Jacobs Solutions, you can compare the effects of market volatilities on Huntington Ingalls and Jacobs Solutions 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 Huntington Ingalls with a short position of Jacobs Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Jacobs Solutions.

Diversification Opportunities for Huntington Ingalls and Jacobs Solutions

0.85

Correlation Coefficient

Huntington Ingalls  Jacobs Solutions

Very poor diversification

The 3 months correlation between Huntington and Jacobs is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Jacobs Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacobs Solutions and Huntington Ingalls 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 Huntington Ingalls Industries are associated (or correlated) with Jacobs Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacobs Solutions has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Jacobs Solutions go up and down completely randomly.

Pair Corralation between Huntington Ingalls and Jacobs Solutions

Considering the 90-day investment horizon Huntington Ingalls is expected to generate 1.27 times less return on investment than Jacobs Solutions. In addition to that, Huntington Ingalls is 1.38 times more volatile than Jacobs Solutions. It trades about 0.12 of its total potential returns per unit of risk. Jacobs Solutions is currently generating about 0.21 per unit of volatility. If you would invest  13,208  in Jacobs Solutions on July 6, 2025 and sell it today you would earn a total of  2,252  from holding Jacobs Solutions or generate 17.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Huntington Ingalls Industries  vs.  Jacobs Solutions

Huntington Ingalls

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Huntington Ingalls Industries are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Huntington Ingalls may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Jacobs Solutions

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Jacobs Solutions are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Jacobs Solutions revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Huntington Ingalls and Jacobs Solutions

The main advantage of trading using opposite Huntington Ingalls and Jacobs Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Ingalls position performs unexpectedly, Jacobs Solutions 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 Jacobs Solutions will offset losses from the drop in Jacobs Solutions' long position.

The idea behind Huntington Ingalls Industries and Jacobs Solutions 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.