Correlation Between Finward Bancorp and Huntington Bancshares
Can any of the company-specific risk be diversified away by investing in both Finward Bancorp 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 Finward Bancorp and Huntington Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finward Bancorp and Huntington Bancshares Incorporated, you can compare the effects of market volatilities on Finward Bancorp 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 Finward Bancorp with a short position of Huntington Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finward Bancorp and Huntington Bancshares.
Diversification Opportunities for Finward Bancorp and Huntington Bancshares
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Finward and Huntington is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Finward 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 Finward Bancorp 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 Finward 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 Finward Bancorp i.e., Finward Bancorp and Huntington Bancshares go up and down completely randomly.
Pair Corralation between Finward Bancorp and Huntington Bancshares
Given the investment horizon of 90 days Finward Bancorp is expected to generate 10.97 times less return on investment than Huntington Bancshares. In addition to that, Finward Bancorp is 1.0 times more volatile than Huntington Bancshares Incorporated. It trades about 0.0 of its total potential returns per unit of risk. Huntington Bancshares Incorporated is currently generating about 0.04 per unit of volatility. If you would invest 1,271 in Huntington Bancshares Incorporated on September 12, 2024 and sell it today you would earn a total of 471.00 from holding Huntington Bancshares Incorporated or generate 37.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finward Bancorp vs. Huntington Bancshares Incorpor
Performance |
| Timeline |
| Finward Bancorp |
| Huntington Bancshares |
Finward Bancorp and Huntington Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finward Bancorp and Huntington Bancshares
The main advantage of trading using opposite Finward Bancorp and Huntington Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finward Bancorp 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.| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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