Correlation Between SIGNA Sports and Huntington Ingalls

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

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

Diversification Opportunities for SIGNA Sports and Huntington Ingalls

0.0

Correlation Coefficient

SIGNA Sports  Huntington Ingalls

Pay attention - limited upside

The 3 months correlation between SIGNA and Huntington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIGNA Sports United and Huntington Ingalls Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Ingalls and SIGNA Sports 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 SIGNA Sports United 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 SIGNA Sports i.e., SIGNA Sports and Huntington Ingalls go up and down completely randomly.

Pair Corralation between SIGNA Sports and Huntington Ingalls

Assuming the 90 days horizon SIGNA Sports United is expected to under-perform the Huntington Ingalls. In addition to that, SIGNA Sports is 6.97 times more volatile than Huntington Ingalls Industries. It trades about -0.13 of its total potential returns per unit of risk. Huntington Ingalls Industries is currently generating about 0.14 per unit of volatility. If you would invest  27,074  in Huntington Ingalls Industries on September 10, 2025 and sell it today you would earn a total of  4,514  from holding Huntington Ingalls Industries or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SIGNA Sports United  vs.  Huntington Ingalls Industries

SIGNA Sports United

Risk-Adjusted Performance

Weakest

Over the last 90 days SIGNA Sports United has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Huntington Ingalls

Risk-Adjusted Performance

Good

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 sluggish forward indicators, Huntington Ingalls demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIGNA Sports and Huntington Ingalls

The main advantage of trading using opposite SIGNA Sports and Huntington Ingalls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIGNA Sports 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.

The idea behind SIGNA Sports United 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.