Correlation Between CCSB Financial and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both CCSB Financial 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 CCSB Financial and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCSB Financial Corp and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on CCSB Financial 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 CCSB Financial with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Huntington Bancshares.
Diversification Opportunities for CCSB Financial and Huntington Bancshares
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCSB and Huntington is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and CCSB Financial 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 CCSB Financial Corp 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 CCSB Financial i.e., CCSB Financial and Huntington Bancshares go up and down completely randomly.
Pair Corralation between CCSB Financial and Huntington Bancshares
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Huntington Bancshares. But the pink sheet apears to be less risky and, when comparing its historical volatility, CCSB Financial Corp is 1.99 times less risky than Huntington Bancshares. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Huntington Bancshares Incorporated is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,462 in Huntington Bancshares Incorporated on September 2, 2024 and sell it today you would earn a total of 339.00 from holding Huntington Bancshares Incorporated or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCSB Financial Corp vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| CCSB Financial Corp |
| Huntington Bancshares |
CCSB Financial and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Huntington Bancshares
The main advantage of trading using opposite CCSB Financial and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial 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.| CCSB Financial vs. HUMANA INC | CCSB Financial vs. SCOR PK | CCSB Financial vs. Aquagold International | CCSB Financial vs. Thrivent High Yield |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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