Correlation Between Huntington Bancshares and BEO Bancorp
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and BEO Bancorp 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 Huntington Bancshares and BEO Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huntington Bancshares Incorporated and BEO Bancorp, you can compare the effects of market volatilities on Huntington Bancshares and BEO Bancorp 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 Huntington Bancshares with a short position of BEO Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and BEO Bancorp.
Diversification Opportunities for Huntington Bancshares and BEO Bancorp
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Huntington and BEO is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and BEO Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEO Bancorp and Huntington Bancshares 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 Huntington Bancshares Incorporated are associated (or correlated) with BEO Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEO Bancorp has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and BEO Bancorp go up and down completely randomly.
Pair Corralation between Huntington Bancshares and BEO Bancorp
Given the investment horizon of 90 days Huntington Bancshares is expected to generate 1.88 times less return on investment than BEO Bancorp. In addition to that, Huntington Bancshares is 1.04 times more volatile than BEO Bancorp. It trades about 0.04 of its total potential returns per unit of risk. BEO Bancorp is currently generating about 0.08 per unit of volatility. If you would invest 4,200 in BEO Bancorp on September 2, 2024 and sell it today you would earn a total of 3,450 from holding BEO Bancorp or generate 82.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.9% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. BEO Bancorp
Performance |
| Timeline |
| Huntington Bancshares |
| BEO Bancorp |
Huntington Bancshares and BEO Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and BEO Bancorp
The main advantage of trading using opposite Huntington Bancshares and BEO Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, BEO Bancorp 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 BEO Bancorp will offset losses from the drop in BEO Bancorp's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| BEO Bancorp vs. Piraeus Bank SA | BEO Bancorp vs. Turkiye Garanti Bankasi | BEO Bancorp vs. Uwharrie Capital Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |