Correlation Between First Northwest and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both First Northwest 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 First Northwest and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Northwest Bancorp and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on First Northwest 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 First Northwest with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Northwest and Huntington Bancshares.
Diversification Opportunities for First Northwest and Huntington Bancshares
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Huntington is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding First Northwest Bancorp and Huntington Bancshares Incorpor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huntington Bancshares and First Northwest 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 First Northwest Bancorp 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 First Northwest i.e., First Northwest and Huntington Bancshares go up and down completely randomly.
Pair Corralation between First Northwest and Huntington Bancshares
Given the investment horizon of 90 days First Northwest Bancorp is expected to under-perform the Huntington Bancshares. In addition to that, First Northwest is 1.19 times more volatile than Huntington Bancshares Incorporated. It trades about -0.01 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.13 per unit of volatility. If you would invest 1,002 in Huntington Bancshares Incorporated on September 1, 2024 and sell it today you would earn a total of 799.00 from holding Huntington Bancshares Incorporated or generate 79.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Northwest Bancorp vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| First Northwest Bancorp |
| Huntington Bancshares |
First Northwest and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Northwest and Huntington Bancshares
The main advantage of trading using opposite First Northwest and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Northwest 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.| First Northwest vs. Home Federal Bancorp | First Northwest vs. First Financial Northwest | First Northwest vs. First Capital | First Northwest vs. Community West Bancshares |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |