Correlation Between Science Applications and Ingram Micro

Can any of the company-specific risk be diversified away by investing in both Science Applications and Ingram Micro 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 Science Applications and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Science Applications International and Ingram Micro Holding, you can compare the effects of market volatilities on Science Applications and Ingram Micro 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 Science Applications with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and Ingram Micro.

Diversification Opportunities for Science Applications and Ingram Micro

-0.67

Correlation Coefficient

Science Applications  Ingram Micro

Excellent diversification

The 3 months correlation between Science and Ingram is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and Ingram Micro Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Holding and Science Applications 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 Science Applications International are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Holding has no effect on the direction of Science Applications i.e., Science Applications and Ingram Micro go up and down completely randomly.

Pair Corralation between Science Applications and Ingram Micro

Given the investment horizon of 90 days Science Applications International is expected to under-perform the Ingram Micro. But the stock apears to be less risky and, when comparing its historical volatility, Science Applications International is 1.16 times less risky than Ingram Micro. The stock trades about -0.13 of its potential returns per unit of risk. The Ingram Micro Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,013  in Ingram Micro Holding on July 16, 2025 and sell it today you would earn a total of  105.00  from holding Ingram Micro Holding or generate 5.22% return on investment over 90 days.

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

Science Applications Internati  vs.  Ingram Micro Holding

Science Applications

Risk-Adjusted Performance

Weakest

Over the last 90 days Science Applications International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Ingram Micro Holding

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Ingram Micro Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Ingram Micro is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Science Applications and Ingram Micro

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

The idea behind Science Applications International and Ingram Micro Holding 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.