Correlation Between Bank of Marin and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Bank of Marin 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 Bank of Marin and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Marin and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Bank of Marin 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 Bank of Marin with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Marin and Huntington Bancshares.
Diversification Opportunities for Bank of Marin and Huntington Bancshares
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bank and Huntington is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Marin and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and Bank of Marin 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 Bank of Marin 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 Bank of Marin i.e., Bank of Marin and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Bank of Marin and Huntington Bancshares
Given the investment horizon of 90 days Bank of Marin is expected to generate 1.31 times less return on investment than Huntington Bancshares. In addition to that, Bank of Marin is 1.42 times more volatile than Huntington Bancshares Incorporated. It trades about 0.05 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.09 per unit of volatility. If you would invest 1,038 in Huntington Bancshares Incorporated on August 31, 2024 and sell it today you would earn a total of 763.00 from holding Huntington Bancshares Incorporated or generate 73.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Marin vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Bank of Marin |
| Huntington Bancshares |
Bank of Marin and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Marin and Huntington Bancshares
The main advantage of trading using opposite Bank of Marin and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Marin 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.| Bank of Marin vs. Community West Bancshares | Bank of Marin vs. Heritage Financial | Bank of Marin vs. First Financial Northwest | Bank of Marin vs. Sierra Bancorp |
| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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