Correlation Between Burke Herbert and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Burke Herbert 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 Burke Herbert and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burke Herbert Financial and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Burke Herbert 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 Burke Herbert with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burke Herbert and Huntington Bancshares.
Diversification Opportunities for Burke Herbert and Huntington Bancshares
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Burke and Huntington is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Burke Herbert Financial and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and Burke Herbert 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 Burke Herbert Financial 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 Burke Herbert i.e., Burke Herbert and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Burke Herbert and Huntington Bancshares
Given the investment horizon of 90 days Burke Herbert Financial is expected to generate 1.43 times more return on investment than Huntington Bancshares. However, Burke Herbert is 1.43 times more volatile than Huntington Bancshares Incorporated. It trades about 0.07 of its potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.1 per unit of risk. If you would invest 5,360 in Burke Herbert Financial on September 3, 2024 and sell it today you would earn a total of 1,568 from holding Burke Herbert Financial or generate 29.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burke Herbert Financial vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Burke Herbert Financial |
| Huntington Bancshares |
Burke Herbert and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burke Herbert and Huntington Bancshares
The main advantage of trading using opposite Burke Herbert and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burke Herbert 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.| Burke Herbert vs. Private Bancorp of | Burke Herbert vs. Avidbank Holdings | Burke Herbert vs. American Business Bk | Burke Herbert vs. Home Federal Bancorp |
| Huntington Bancshares vs. JPMorgan Chase Co | Huntington Bancshares vs. Citigroup | Huntington Bancshares vs. Wells Fargo | Huntington Bancshares vs. Toronto Dominion Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |