Correlation Between Huntington Bancshares and CB Financial
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and CB Financial 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 CB Financial 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 CB Financial Services, you can compare the effects of market volatilities on Huntington Bancshares and CB Financial 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 CB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and CB Financial.
Diversification Opportunities for Huntington Bancshares and CB Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huntington and CBFV is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and CB Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CB Financial Services 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 CB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CB Financial Services has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and CB Financial go up and down completely randomly.
Pair Corralation between Huntington Bancshares and CB Financial
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 1.01 times more return on investment than CB Financial. However, Huntington Bancshares is 1.01 times more volatile than CB Financial Services. It trades about 0.13 of its potential returns per unit of risk. CB Financial Services is currently generating about 0.09 per unit of risk. If you would invest 1,062 in Huntington Bancshares Incorporated on August 25, 2024 and sell it today you would earn a total of 727.00 from holding Huntington Bancshares Incorporated or generate 68.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. CB Financial Services
Performance |
| Timeline |
| Huntington Bancshares |
| CB Financial Services |
Huntington Bancshares and CB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and CB Financial
The main advantage of trading using opposite Huntington Bancshares and CB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, CB Financial 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 CB Financial will offset losses from the drop in CB Financial's long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| CB Financial vs. Fifth Third Bancorp | CB Financial vs. Zions Bancorporation | CB Financial vs. Huntington Bancshares Incorporated | CB Financial vs. PNC Financial Services |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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