Correlation Between Huntington Bancshares and CrossFirst Bankshares
Can any of the company-specific risk be diversified away by investing in both Huntington Bancshares and CrossFirst Bankshares 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 CrossFirst Bankshares 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 CrossFirst Bankshares, you can compare the effects of market volatilities on Huntington Bancshares and CrossFirst Bankshares 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 CrossFirst Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huntington Bancshares and CrossFirst Bankshares.
Diversification Opportunities for Huntington Bancshares and CrossFirst Bankshares
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Huntington and CrossFirst is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Huntington Bancshares Incorpor and CrossFirst Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrossFirst Bankshares 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 CrossFirst Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrossFirst Bankshares has no effect on the direction of Huntington Bancshares i.e., Huntington Bancshares and CrossFirst Bankshares go up and down completely randomly.
Pair Corralation between Huntington Bancshares and CrossFirst Bankshares
Given the investment horizon of 90 days Huntington Bancshares Incorporated is expected to generate 0.84 times more return on investment than CrossFirst Bankshares. However, Huntington Bancshares Incorporated is 1.2 times less risky than CrossFirst Bankshares. It trades about 0.16 of its potential returns per unit of risk. CrossFirst Bankshares is currently generating about 0.02 per unit of risk. If you would invest 1,481 in Huntington Bancshares Incorporated on August 30, 2024 and sell it today you would earn a total of 319.00 from holding Huntington Bancshares Incorporated or generate 21.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huntington Bancshares Incorpor vs. CrossFirst Bankshares
Performance |
| Timeline |
| Huntington Bancshares |
| CrossFirst Bankshares |
Huntington Bancshares and CrossFirst Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huntington Bancshares and CrossFirst Bankshares
The main advantage of trading using opposite Huntington Bancshares and CrossFirst Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huntington Bancshares position performs unexpectedly, CrossFirst Bankshares 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 CrossFirst Bankshares will offset losses from the drop in CrossFirst Bankshares' long position.| Huntington Bancshares vs. Zions Bancorporation | Huntington Bancshares vs. Comerica | Huntington Bancshares vs. Western Alliance Bancorporation | Huntington Bancshares vs. US Bancorp |
| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West Bancshares |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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