Correlation Between Huntington Ingalls and Mueller Industries

Can any of the company-specific risk be diversified away by investing in both Huntington Ingalls and Mueller Industries 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 Mueller Industries 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 Mueller Industries, you can compare the effects of market volatilities on Huntington Ingalls and Mueller Industries 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 Mueller Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Ingalls and Mueller Industries.

Diversification Opportunities for Huntington Ingalls and Mueller Industries

0.91

Correlation Coefficient

Huntington Ingalls  Mueller Industries

Almost no diversification

The 3 months correlation between Huntington and Mueller is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Ingalls Industries and Mueller Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mueller Industries 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 Mueller Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mueller Industries has no effect on the direction of Huntington Ingalls i.e., Huntington Ingalls and Mueller Industries go up and down completely randomly.

Pair Corralation between Huntington Ingalls and Mueller Industries

Considering the 90-day investment horizon Huntington Ingalls is expected to generate 1.0 times less return on investment than Mueller Industries. In addition to that, Huntington Ingalls is 1.34 times more volatile than Mueller Industries. It trades about 0.14 of its total potential returns per unit of risk. Mueller Industries is currently generating about 0.19 per unit of volatility. If you would invest  9,508  in Mueller Industries on September 3, 2025 and sell it today you would earn a total of  1,459  from holding Mueller Industries or generate 15.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Huntington Ingalls Industries  vs.  Mueller Industries

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 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Huntington Ingalls demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mueller Industries

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mueller Industries are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal essential indicators, Mueller Industries demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Huntington Ingalls and Mueller Industries

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

The idea behind Huntington Ingalls Industries and Mueller 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.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.