Correlation Between SIVERS SEMICONDUCTORS and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Huntington Bancshares 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 SIVERS SEMICONDUCTORS and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Huntington Bancshares 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 SIVERS SEMICONDUCTORS with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Huntington Bancshares.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Huntington Bancshares
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Huntington is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with Huntington Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huntington Bancshares has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Huntington Bancshares go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Huntington Bancshares
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Huntington Bancshares. In addition to that, SIVERS SEMICONDUCTORS is 4.77 times more volatile than Huntington Bancshares Incorporated. It trades about -0.06 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.28 per unit of volatility. If you would invest 1,437 in Huntington Bancshares Incorporated on September 1, 2024 and sell it today you would earn a total of 256.00 from holding Huntington Bancshares Incorporated or generate 17.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Huntington Bancshares |
SIVERS SEMICONDUCTORS and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Huntington Bancshares
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Huntington Bancshares 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 Bancshares will offset losses from the drop in Huntington Bancshares' long position.| SIVERS SEMICONDUCTORS vs. NVIDIA | SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Intel |
| Huntington Bancshares vs. Fifth Third Bancorp | Huntington Bancshares vs. Regions Financial | Huntington Bancshares vs. Superior Plus Corp | Huntington Bancshares vs. Origin Agritech |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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