Correlation Between SCIENCE IN and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both SCIENCE IN 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 SCIENCE IN and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCIENCE IN SPORT and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on SCIENCE IN 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 SCIENCE IN with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCIENCE IN and Huntington Bancshares.
Diversification Opportunities for SCIENCE IN and Huntington Bancshares
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SCIENCE and Huntington is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and SCIENCE IN 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 IN SPORT 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 SCIENCE IN i.e., SCIENCE IN and Huntington Bancshares go up and down completely randomly.
Pair Corralation between SCIENCE IN and Huntington Bancshares
Assuming the 90 days horizon SCIENCE IN is expected to generate 34.69 times less return on investment than Huntington Bancshares. But when comparing it to its historical volatility, SCIENCE IN SPORT is 1.13 times less risky than Huntington Bancshares. It trades about 0.01 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,418 in Huntington Bancshares Incorporated on August 29, 2024 and sell it today you would earn a total of 304.00 from holding Huntington Bancshares Incorporated or generate 21.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCIENCE IN SPORT vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| SCIENCE IN SPORT |
| Huntington Bancshares |
SCIENCE IN and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCIENCE IN and Huntington Bancshares
The main advantage of trading using opposite SCIENCE IN and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCIENCE IN 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.| SCIENCE IN vs. CNVISION MEDIA | SCIENCE IN vs. GigaMedia | SCIENCE IN vs. Live Nation Entertainment | SCIENCE IN vs. CarsalesCom |
| Huntington Bancshares vs. Superior Plus Corp | Huntington Bancshares vs. NMI Holdings | Huntington Bancshares vs. Origin Agritech | Huntington Bancshares vs. SIVERS SEMICONDUCTORS AB |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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